# What-If model for inventory control?

#### macfuller

##### Active Member
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

Using Function Arguments with nested formulas
If writing INDEX in Func. Arguments, type MATCH(. Use the mouse to click inside MATCH in the formula bar. Dialog switches to MATCH.

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