Economic Order Interval (EOI)

The Economic Order Interval (EOI) is a powerful tool in inventory management, helping businesses discover the magic sweet spot between two opposing costs: the expenses of placing orders and the burden of holding onto inventory. Every time you order something, there’s a fixed setup cost involved, along with transportation and handling fees. On the other hand, storing the acquired goods incurs ongoing expenses like warehouse space, insurance, and even potential product deterioration.

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