Economic Order Quantity, also known as EOQ, is a production-scheduling model, which was first developed by an American production engineer Ford Whitman Harris in 1913. The purpose of EOQ is to determine the perfect order…

Generally, the purpose of auditing is to assure a fair and accurate representation of the company’s financial reports. Audits can can be under the responsibility of the internal resources,  or by third-party organizations. Auditors have…

  According to Wikipedia, safety stock is a phrase used by logisticians to indicate a quantity of excess stock kept on hand to avoid out-of-stock cases caused by market demand fluctuations. With sufficient volumes of…

When a customer places an order, many processes happen until they receive the ordered products. Despite the quality of the goods, customers also care about the delivery time. From the business perspective, that is the…

Inventory is an asset that a company uses in production or sales. For many companies, inventory is a crucial asset because of its high value and profit-generating nature. That is why business leaders invest in…

Manual data entries and other repetitive everyday tasks can be extremely tedious, boring, and inefficient. Despite that these types of tasks make you sleepy, they also waste valuable time and resources while cutting down your…

As Investopedia defines, the term inventory is used to describe goods and raw materials available for sale or available to be used to produce goods for sale. It is of the most crucial assets that…

Technology is ruling all industries of the modern world. Its benefits are countless – from time-saving and resource optimization to errorless operations. Wholesale and retail industries are not exceptions. Companies develop strategies and utilize resources…

As defined by Investopedia, Days inventory outstanding (DIO), also known as Days Sales of Inventory (DSI) and Days in Inventory (DII), is a financial ratio used to measure the average number of days that a…

Minimum order quantity (MOQ)   What is the minimum order quantity (MOQ)?   The minimum order quantity (MOQ) is the lowest number of inventory units the supplier sets for the buyer to purchase at once….

What is the order to cash (O2C) process?   The order to cash process is the complete order processing cycle run by a business or a company. The process begins from the very moment the…

What is inventory tracking?   The answer to “how to keep track of inventory?” refers to managing the quantity of the goods purchased and sold by the company throughout the business operations.    Whether you…

What is inventory?   Inventory is an essential component of every growing business. It includes the raw materials, the work-in-process goods, and the finished goods. As all of these assets are convertible into cash within…

Back in 1906, Italian economist Vilfredo Pareto found out that 20% of the Italian population owns 80% of the land. His findings became applicable for many fields and scenarios, starting from gardening to economics and…

Unfortunately, companies do not always sell products as quickly and effectively as anticipated by a company. Sometimes, they end their life cycle without getting sold. That unsold inventory is called excess inventory. It ends up…