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There are several mathematical models in commercial logistics to calculate the optimal re-ordering cycle. One of it is based in the demand and the economic variables only (costs of reordering an item and the cost of holding it in the inventory). It is referred as the Economic Order Quantity (EOQ) model:Image Removed


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Nevertheless, estimating the costs of reordering and holding an item in the inventory can lead to complex calculation processes and is only recommended for well-established and mature supply chains.

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