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c) The value of the economic order (EOQ) is a good way to track the two previous calculators. Once you know your turnover and the right time for the next order, the next step is to know how many items you should order. That`s exactly what the EOQ does: say how many units you should order at the same time. It offers an additional level of security above the control point, which reduces the likelihood of overelecument and dead stock. Discover the EOQ for your business This agreement reduces the risk of the exporter because he remains the owner of the goods in Storage. The trader does not have to pay until he has sold the goods, so he improves his cash flow. Both parties must ensure that the supply contract is formulated with great care, so that in the event of bankruptcy, there is no doubt about the third parties, especially the trader`s creditors. The trader and exporter have incompatible interests. The trader`s interest is to increase the amount of the badge stock, as this does not affect his cash position.

Therefore, the parties should opt for an appropriate fabric vehicle, adapted to market demand, which may be accompanied by a consignment agreement (franchising, distribution or OEM). The goods are stored on the premises of the distributor or in the premises of a third party available to the distributor, but remain the property of the exporter. Your accepted quality limit (AQL) is the maximum number of defective items you accept in a randomly selected sample of items. This is a level of quality that you decide, most often on the basis of industrial standards. To use an AQL, test samples of statistical products instead of checking the entire batch or batch report and, based on sample analysis, accept or refuse the entire batch. For example, if you received 100 pairs of shoes from your manufacturer, you study 10 pairs of shoes for your AQL analysis. If you placed your AQL at 4, it means that you accept the stack of items if there are no more than 4 defective items in this particular example. It`s a good idea to discuss your product, packaging and AQL requirements with your supplier while you reach an agreement. To learn more about AQL, including how to determine the appropriate sample size and acceptance level, look at this detailed Video Dead action, which is the kind of problem that can happen all the time you run your business. Although it cannot be completely cancelled, it can be kept to a minimum. If you follow the correct ordering tactic with your order point, EOQ and stock purchase report, you can solve the problem of overlaying goods in your warehouse or warehouse. If market conditions are faltering or your products are not getting as much attention as you expected, try selling strategies such as pooling, discount sales and various sales channels such as online markets.

Finally, if your ordering and sales strategies are on track and you are still carrying dead inventory, then it`s time to put in place quality standards for your products to reduce the likelihood that defective items will be included in your inventory. So if you follow all these tactics, your dead stock will disappear completely? Well, there is no reliable answer, but the steps above can help you identify faults and contain dead stocks.

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