Use Wilson formula to calculate Economical Quantity on ABC log Classes Price * Consumption
EOQ stands for Economic Order Quantity. It is the quantity ordered from the supplier to allow replenishment while minimizing the total cost of the stock.
The stock level reaches the order point when the order is triggered.
The EOQ is calculated with the aim of minimizing a synergy of costs such as purchasing cost, storage cost. Optimizing the order quantity is additional to optimizing the safety stock.
To do this, the Wilson formula is used. This is a stock optimization formula. In order to be able to calculate the economic order quantity in your company.
What does REOQ mean?
REOQ stands for “Reorder Quantity” and it is a term used in inventory management to refer to the amount of inventory that should be ordered when the inventory level reaches a certain point. The reorder quantity is typically calculated based on the expected demand for the product, the lead time for reordering, and the holding costs associated with maintaining the inventory. The goal of calculating the reorder quantity is to find the optimal balance between keeping enough inventory on hand to meet demand, while also minimizing excess inventory and related holding costs.
In inventory management, the reorder point is the inventory level at which a new order should be placed. The reorder quantity is the amount of inventory that should be ordered when the reorder point is reached. Together, the reorder point and the reorder quantity help to ensure that the inventory is maintained at an optimal level, without running out of stock or accumulating excess inventory.