Inventory formulas at your fingertips
Recall core formulas and when each one applies.
Core idea What is the main use of Economic Order Quantity (EOQ) here? It helps match the inventory control to the actual operating mechanism. Use it to avoid blanket buffers, blanket cuts, or unexplained adjustments. Compare Reflex vs. professional move The professional move leaves evidence for the next review. Objection “Can’t we just add more inventory?” A teammate wants comfort stock after a miss. Your line “Maybe, but first let’s name the risk: demand variation, lead-time variation, record accuracy, or policy gap.” Adding stock without a named risk can hide the defect and tie up cash. It validates service concern…
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