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.Regular reviews of stock levels are made. Stock is reordered if it reaches a minimum threshold.
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