Chloe received a bachelor's degree in journalism and mass communication from Ashford University and is currently a digital content creator for Hubworks. In her free time, she enjoys acting, writing, and spending time with family.
Businesses that utilize the economic order quantity model and automated inventory replenishment systems can increase their profits by reducing stock mismanagement.
Stockout costs due to inventory shortages can cost businesses thousands each year. Simply learning how to reduce these expenses can lead to maximized sales.
Determining cycle, lead, and takt times are vital for companies to meet consumer demand, improve operation efficiency, and boost customer satisfaction.
Setting an inventory level creates a guideline for businesses to determine what amount of stock can meet customer demand while avoiding overproduction.
Calculating the inventory reorder point can help with implementing efficient replenishment systems to fulfill orders while preventing stockouts and backorders.