What is Economic Order Quantity (EOC)?

What is Economic Order Quantity (EOC)?

Imagine you’re playing one of those strategy video games where you must keep your resources balanced—too much of one thing, and you’re wasting valuable space; too little, and you risk running out when the enemy attacks. Now, replace the game with real life, the resources with your business’s inventory, and the enemy with market demand. Welcome to the world of inventory management—a delicate dance of supply and demand. That’s where Economic Order Quantity (EOQ) steps into the spotlight.

Illustration of ordering to fulfillment via a multi-channel option of eCommerce

What is Multi-Channel Fulfillment?

In the digital era, the art of selling has transcended the simple exchange of goods by calling a salesperson or walking into a store. Today’s savvy shoppers expect to purchase products through various avenues, whether directly from a website, through sprawling online marketplaces, via the streamlined processes of Electronic Data Interchange (EDI), or from a direct sales team. This diversity in sales channels has given rise to Multi-Channel Fulfillment.

Person in warehouse with boxes on a dolly

What is Order Picking in a Warehouse?

In the heart of every bustling warehouse, a critical process unfolds that is pivotal to customer satisfaction and operational efficiency—order picking. This fundamental activity is where the rubber meets the road in warehouse logistics, determining how swiftly and accurately customers receive their goods. But what exactly is order picking, and why does it command such a crucial role in the supply chain?