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Does SKU proliferation combined with shorter product life cycle complicate the EOQ calculation?

from Supply Chain Digest

The principal challenge of all retailers is to be able to purchase a sufficient quantity of the correct products so that their stores have items to sell but, at the same time, not too many so as to keep the total on-hand inventory from rising too high. The key question then is "how much?" The calculation of optimal order quantity, known as EOQ (Economic Order Quantity), also known as the Wilson Formula, is based on the optimization of holding costs and ordering costs. more


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