From the course: Excel: Value Stream Mapping

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Determine inventory waiting time

Determine inventory waiting time - Microsoft Excel Tutorial

From the course: Excel: Value Stream Mapping

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Determine inventory waiting time

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- [Instructor] Once a station completes its part of a process, its output becomes inventory for the next step in the process. In this movie, I'll show you how to calculate inventory waiting time and add that information to your value stream map. I'll start in Excel using the 02_04 Inventory workbook. You can find that in the Exercise Files folder. I have information for my three stations, that is, attaching the limbs, the head, and also the backplate. And I've changed from a takt time to daily demand. The weekly demand, as we've seen in other movies, was 600 units. If you work five days a week, then your daily demand is 120. Now we can use our average inventory levels, that is, the number of units on hand in inventory for each of our three stations, to calculate the number of days of inventory that we have available. So I'll go down to cell C5 and click, and all we need to do is divide the average inventory by the…

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