Bpp question

This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.

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August 13, 2021 at 6:30 pm #631487
johnbriane
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Sir I have seen in questions
“Replenishment order “
What does this term mean ?
August 13, 2021 at 6:36 pm #631489
John Moffat
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Replenishment means refill.
If I am short of inventory to supply to customers then I will need to order more from my suppliers.
This is in order to have more goods to be able to supply and we then say that we are replenishing (refilling) our inventory 🙂
August 13, 2021 at 7:17 pm #631494
johnbriane
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So sir what’s the connection between refilling and EOQ ?
EOQ is based on the best quantity to order that is to minimize the inventory costs
August 14, 2021 at 11:26 am #631543
John Moffat
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They could order any quantities they want to, but as you have written the EOQ is the quantity to order each time in order to minimise the costs.
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