EOQ: formula and use
EOQ (economic order quantity) determines the optimal quantity of products to order to minimise replenishment costs. It aims to define when to place orders and in what quantity, taking into account demand and safety stock.
At Mecalux our goal is to assist you with the three key factors in logistics operations: inventory control, order management & organisation of human resources to reach your objectives.
EOQ (economic order quantity) determines the optimal quantity of products to order to minimise replenishment costs. It aims to define when to place orders and in what quantity, taking into account demand and safety stock.
Enterprise asset management (EAM) software integrates a set of systems and services designed to oversee a company’s assets. It aims to extend the quality of assets and reduce operating costs. EAM software includes asset acquisition, installation, maintenance and disposal.
Hybrid cloud refers to solutions with applications or components deployed across both public and private clouds. A hybrid cloud is a cloud computing environment that uses a combination of local, private-cloud, and third-party public cloud services.
Edge AI (or artificial intelligence at the edge) is the implementation of AI in an edge computing environment. It allows for calculations to be performed close to where data are collected and for devices to make smarter decisions faster.
Predictive maintenance leverages data to identify anomalies and defects in equipment before malfunctions occur. Predictive maintenance is part of regularly scheduled maintenance activities and minimises interventions, avoids unplanned downtime and reduces costs.
Material handling refers to a system or combination of methods that enables the storage and transportation of goods from one location to another. It includes packaging, handling, and storage from the manufacturing point, relying on automatic, semi-automatic, and manual equipment.
Computer vision is a field of AI that enables computers and systems to extract information from images and videos. After processing the data through algorithms, computers — which “see” and “understand” their environment — can take actions or make recommendations and suggestions.
Demand forecasting is the analytics process companies use to estimate how many products their customers will order. These forecasts employ historical data and other inputs to anticipate consumers’ behaviour and future purchasing decisions.
Warehouse setup is critical for maximizing efficiency and productivity in any company. A good warehouse design can help reduce storage costs, improve employee safety and ergonomics, and streamline the flow of goods.
Machine customers are AI-driven programs designed to buy and sell products automatically. Some appliances have already begun placing orders and by 2030, machines could handle 25% of all market transactions.
Bottlenecks are events that slow down manufacturing processes, drive up lead times and hinder productivity. Detecting and removing these obstacles gives businesses a competitive edge, enabling them to work without hindrances and expedite projects and timelines.
A supplier is a person or company that provides others with the goods or services needed to support their production. There are different types of suppliers in the market, each fulfilling a specific need within the supply chain. They include wholesalers, manufacturers, importers and regular vendors.
Nearshoring involves outsourcing a company’s services and bringing production closer to countries near the consumer territory. The destinations are neighbouring locations that share a similar time zone, reducing transport costs and offering advantages like better communication.
A regional warehouse serves to receive a large flow of vehicles and distribute goods to an area in under 24 hours. These types of facilities are key for offering quick, reliable delivery and handling products with short sell-by dates.
The product life cycle consists of the 5 phases an item goes through from its invention until it disappears from the market. This model is based on the theory of the economist Theodore Levitt and can be broken down into 5 stages: development, introduction, growth, maturity and decline.
Logistics trends for 2024 are an opportunity to raise your competitiveness and supply chain resilience. Let’s explore the trends that — according to renowned consulting firms — are set to shape industrial and business development next year and usher in new innovations.
Inventory management is a fundamental process that enables companies to organize their stock efficiently. Implementing software to supervise logistics facilities provides real-time inventory visibility and fosters effective decision-making.
Meeting logistics objectives is key to enhancing efficiency and increasing competitiveness. It’s essential to meet the 10 goals of logistics — one of the supply chain stages with the greatest impact on customer satisfaction.
Distribution channels are the means manufacturers employ to deliver their products to end consumers. These channels can be direct, without intermediaries, or indirect, through wholesalers, retailers and distributors.
Business logistics encompasses the procurement of materials, the organisation of production processes and order distribution. In business logistics, there are 7 “rights” for delivering customer orders in the stipulated quantities and at the agreed-upon place and time.
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