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Posts Tagged "ROP"

Reorder Point—When should I order inventory?

by Don Lindsey Balancing inventory is essential for your business. If you order too early, you’ll tie up cash and spend needlessly on storage of excess items. Order too late and you’ll face disappointed customers. Knowing your reorder point (ROP) is an important step in adequately managing your replenishment process. The ROP is the level of inventory […]

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Safety Stock—Your Guard Against Uncertainty

The Safety Stock Calculation Formula by Don Lindsey Determining the most efficient inventory levels is one of the most important components of your company’s operations. Safety stock describes a level of extra inventory that your company maintains to mitigate the risk of stockouts or shortfalls in the raw materials due to uncertainties in the supply […]

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