What-If model for inventory control?


Active Member
Apr 30, 2014
Office Version
  1. 365
  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.

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