What is Reorder Quantity Formula?
What is Reorder Quantity? Reorder Quantity (ROQ) is the inventory amount needed when stock reaches a certain threshold, balancing demand, average lead time, and safety stock. The Reorder Quantity Formula optimizes ordering frequency, using reorder points to maintain stock levels and reduce holding costs. What is the Reorder Quantity Formula? The Reorder Quantity Formula, or […]
What is Inventory Shrinkage?
What is Inventory Shrinkage? Inventory shrinkage occurs when the physical stock on hand is less than what’s recorded in the inventory system. This inventory shrinkage definition is a crucial concept in retail inventory management as it impacts businesses relying on accurate stock counts for efficient operations, customer satisfaction, and profitability. Why is Reducing Inventory Shrinkage […]
