TOPICS » Purchasing & Replenishment

Reorder point formula, safety stock & lead times –…

6 min read

A common way to calculate inventory reorder points is to use a formula that focuses on ordering a specific number stock days. These calculations are done manually, often in excel, and the data is then input into an ERP system, so it has the relevant parameters to create reorder alerts....Read more

Coronavirus blog series – Inventory management challenges & solutions

6 min read

The coronavirus pandemic has highlighted many weaknesses in supply chains across the globe. Common challenges include unpredictable customer behaviour, unreliable inventory supplies, rising logistical costs and internal capacity constraints. It’s already apparent that those supply chain management (SCM) teams that can adapt their operations and respond quickly to these issues...Read more

The problem with the Economic Order Quantity (EOQ) model

4 min read

The economic order quantity (EOQ) model is a fairly popular means of calculating inventory reorder quantities and working out how many orders to place per annum. However, EOQ is often criticised for being over-simplistic and relying on consistent data inputs which don’t really reflect reality. In this post we take...Read more

Using the Economic Order Quantity formula in inventory management

4 min read

The economic order quantity model is used in inventory management to support replenishment activity. But just how useful is it in reality? Can such a simple formula really be applied to today’s complex supply chains? In this post we find out more… In inventory management, economic order quantity (EOQ) is...Read more

Reorder point planning – how to calculate reorder points

5 min read

“Sorry, that product is out of stock” is a phrase that no one wants to hear – whether you’re the customer or the seller!  A few years ago it might have been okay for customers to wait a few days for their goods to come back into stock, but in...Read more

How to improve inventory forecasting & replenishment

4 min read

Stock availability and speed of delivery are key factors for businesses in both B2B and B2C marketplaces. If you can help your customers meet their customers’ expectations, in terms of convenience, choice and price, you’ll become their long-term ‘go-to’ supply chain partner. Efficient inventory forecasting and replenishment processes are key...Read more