These tips will help you avoid overspending and underspending on stock.
Maintaining adequate stock levels is essential to running a successful business – these tips will help you avoid overspending and underspending on stock. Inventory software provides control over all aspects of stock and supplies, integrating related processes into a centrally accessible software package. As your business functions, the software can advise you of necessary action, such as ordering new products once your stock hits a certain level. This can help you make logical decisions to help avoid overstocking.
A number of methods are commonly used in business depending on the type of company and the industry in which it operates.[blockquoteStock reviews – regular reviews of stock levels are made. Stock is reordered if it reaches a minimum threshold.[/blockquote]
Fixed-time/fixed-level reordering – stock is ordered at regular intervals and for a fixed value, for example, 240 pallets every second Monday of the month Just in time (JIT) – stock is ordered at the last possible minute to decrease costs and improve cash flow Economic Order Quantity (EOQ) – a complex formula is used to judge optimal stock levels. Companies order stock when levels drop below the threshold