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

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Calculate production order quantities

Calculate production order quantities - Microsoft Excel Tutorial

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

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Calculate production order quantities

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- [Instructor] So far in this chapter, we've taken on the role of a retailer that orders goods from suppliers. In this movie, I'll assume we're a manufacturer with our own production facility. Given a certain level of demand and other information, what quantity of products should we ask our production facility to make every day? To demonstrate this calculation, I will use the sample file 0107 production order quantity that you can find in the chapter one folder of the exercise files collection. The calculation that you use to find the Q-Star production given the certain inputs is very similar to the EOQ or economic order quantity calculation that you do when you're buying. You can see that we have an annual demand that's in cell B3. That's the number of items that your customers buy from you. Next, we have the setup costs. That's what it costs you to initiate a production run. We have the…

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