https://navata.com/cms/eoq-economic-order-quantity/ Pros of using EOQ: Cost Efficiency: EOQ helps minimize total inventory costs by optimizing the order quantity, which balances holding costs and ordering costs. This results in cost savings for the business. Improved Cash Flow: EOQ can help reduce the amount of capital tied up in inventory, as you're ordering the right amount at the right time, leading to better cash flow management. Reduced Stockouts and Overstocking: By ordering the right amount of inventory, EOQ minimizes the risk of stockouts and overstocking, ensuring that you have enough product to meet customer demand without excess. Streamlined Operations: EOQ can lead to more efficient order scheduling and reduced administrative and operational complexities. Cons of using EOQ: Assumes Stable Demand: EOQ assumes a constant and known demand rate, which may not hold true in real-world situations. Variability in demand can lead to suboptimal order quantities. Ignores External Factors: EOQ does not consider external factors such as market changes, seasonality, or supplier lead times, which can impact inventory levels and costs. Ignores Storage Constraints: EOQ assumes unlimited storage space, which may not be the case for all businesses. Limited storage space can affect the optimal order quantity. High Setup Costs: EOQ works best when ordering costs are significant. If the setup costs are relatively low, the benefits of EOQ may be limited. Calculation Complexity: The EOQ formula involves mathematical calculations that may be complex for some businesses, particularly those with limited resources for data analysis and forecasting.

https://navata.com/cms/abc-inventory-management-definition-pros-cons/ ABC inventory management, also known as ABC analysis or ABC classification, is a popular technique used in supply chain management and inventory control to categorize items in inventory based on their importance and value. The ABC analysis classifies items into three categories, typically denoted as A, B, and C, based on their significance.

https://navata.com/cms/what-is-ftl-shipping/ FTL, or Full Truckload Shipping, is a logistics and transportation method in which an entire truck is dedicated to a single shipment. This stands in contrast to LTL (Less Than Truckload) shipping, where multiple shipments from different customers are consolidated into a single truck.