From the course: Excel Supply Chain Analysis: Solving Inventory Problems

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Calculate orders per year and time between orders

Calculate orders per year and time between orders - Microsoft Excel Tutorial

From the course: Excel Supply Chain Analysis: Solving Inventory Problems

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Calculate orders per year and time between orders

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- In the previous movie, I showed you how to calculate the economic order quantity, which is the number of items per order, that minimizes your overall cost. With that information in hand, you can determine the number of orders you've placed per year, and also the time between orders. You can use that information to plan your inventory management and order processes effectively. To do these calculations, I will work in the simple workbook named 01_03_OrdersPerYear. You can find that in the chapter one folder of the exercise files collection. The workbook that I've created is a streamlined version of what we used in the previous movie. I have my setup costs and B3, the flow rate in B4, the holding cost to enter directly, instead of calculating in B5, and then the EOQ calculation. You can see the formula on the formula bar. If you want it to estimate your ordering plan, then you need to know the demand per year, the…

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