Economic Inventory
The Economic Inventory EI) in a business is the sum of the inventory it has either On Hand (available for consumers to buy), On Order (bought, but not yet shipped) and In Transit (shipped but not yet received).
To meet customer demand, it is important that there is always enough inventory On Hand, and that inventory In Transit and On Order is enough to prevent On Hand going to zero (stockout) but not too much to cause overstocks.
Retailisation continuously recalculates the new ideal EI (the Target). This Target is then used by our customers as the new 'Max' (see min-max method). Alternatively, Retailisation can calculate the resulting order, while taking into account system constraints such as minimum ordering quantities, pack sizes and other supply chain rules.