What-If model for inventory control?

macfuller

Active Member
Joined
Apr 30, 2014
Messages
319
Office Version
  1. 365
Platform
  1. Windows
Before I attempt to build a Rube Goldberg model contraption for my business question below I'm wondering if anyone has done something similar and can give me pointers.

In each storeroom we have a balance between inventory carrying costs and distributor line fees. To keep the math simple let's say we use an item 12 times a year. The item costs $100 and each time we order the distributor charges us 50 cents. Inventory carrying cost is 2% of the purchase price for what we have in stock. At various extremes we can order 12 items once a year for a line fee of 50 cents and inventory cost of $1200 * 2% = $24.50 in January and so on for the rest of the year.
Or we can order 1 item 12 times at $6 in line fees and $100 * 2% = $8 for each month.
-- I know, it's a no-brainer in this example. --

There's no point in reducing the order quantity for slow-moving items so we'd like to do the analysis just for faster moving items. We have a report with slicers that will give us order frequency and volumes for various item categories. We'd like to add the ability to

(1) show a histogram with days-on-hand inventory levels for filtered items within the storeroom along with inventory and line fee totals (we'll determine separately if a high days-on-hand is because it moves slowly or that we have too much stock in the room);
(2) play what-if by adjusting the days-on-hand value for the selected histogram "bucket" and see what our total spend will be. Think a slider underneath each histogram "bucket" to move the days-on-hand of that group up or down with a corresponding adjustment to the total cost.

(1) is just reporting so we can create the measures for that with some elbow grease. (2) is the interesting part.
 

Excel Facts

Formula for Yesterday
Name Manager, New Name. Yesterday =TODAY()-1. OK. Then, use =YESTERDAY in any cell. Tomorrow could be =TODAY()+1.

Forum statistics

Threads
1,223,227
Messages
6,170,848
Members
452,361
Latest member
d3ad3y3

We've detected that you are using an adblocker.

We have a great community of people providing Excel help here, but the hosting costs are enormous. You can help keep this site running by allowing ads on MrExcel.com.
Allow Ads at MrExcel

Which adblocker are you using?

Disable AdBlock

Follow these easy steps to disable AdBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the icon in the browser’s toolbar.
2)Click on the "Pause on this site" option.
Go back

Disable AdBlock Plus

Follow these easy steps to disable AdBlock Plus

1)Click on the icon in the browser’s toolbar.
2)Click on the toggle to disable it for "mrexcel.com".
Go back

Disable uBlock Origin

Follow these easy steps to disable uBlock Origin

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back

Disable uBlock

Follow these easy steps to disable uBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back
Back
Top