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Reorder Point vs. EOQ: What's the Difference?
Hey Warehouse and Operations Folk! Two terms that get tossed around a lot in inventory management are Reorder Point and EOQ (Economic Order Quantity). While they work together, they solve completely different problems in your supply chain. Let's break down what each one does and when to use them. What Is Reorder Point? Reorder Point = The inventory level that triggers a new order Key Features: • Safety net against stockouts • Time-based calculation • Demand-driven formula • L
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