Excel training videos

How to manage inventory in Excel


How to manage inventory in Excel: Managing inventory is an important aspect of most businesses. Whether you are a manfacturing unit, a trading company or a small store, you need to work with and manage inventory. Managing your raw materials and finished products can lead to substantial savings in your business. We feel that you can create a robust inventory management system using Excel. You need to have an in-depth understanding of flow of goods in your company including seasonal and unexpected variations and a basic knowledge of Excel. In our example shown in the video below, we discuss how a store selling blue silk shirts could manage its inventory. We have made assumptions about the maximum sales per day and the average sales per day. The time taken for delivery of the goods has also been mentioned. Based on these parameters we have calculated the 'variance' between the maximum expected sales and the average sales per day. Based on the variance we have assumed a calculated 'safety margin'. The total of the safety margin and time taken to deliver the goods gives us a good estimate of our re-order levels. Based on the stock-in-hand and the calculated reorder level we can calculate the reorder quantity.


How to manage inventory in Excel