Hello Amr. You can determine your own formula or to save time, the template is available for purchase to follow along step-by-step with the videos. You can find the template on the following page. Link: www.numericalinsights.com/courses Scroll down on that page and look for "Inventory Management Template with Video Explanations."
If you watch parts 1 and 2, you should be able to build your own file. If you don’t want to build your own file, you can purchase one from my web site here: www.numericalinsights.com/store/safety-stock-and-reorder-point-calculator-excel-template-with-video-instructions
Think of committed as being "committed to customers." The committed value is the number of units you have SOLD to customers but HAVE NOT YET SHIPPED OUT to the customer, so the inventory is still in your possession. For example, suppose you have ten units of a product in your building. Your ON HAND = 10 units. Now suppose two of those units have been sold to customers but you haven't sent them out to the customer yet. Essentially two units are promised to customers. Your COMMITTED = 2 units. That leaves an additional 8 units that you can sell to other customers (10 - 2). That makes your AVAILABLE = ON HAND - COMMITTED = 8 units. I hope that helps.
That excel file and my other templates are available for purchase at the following link. You can also use the Part 1 and Part 2 videos to build your own template just like mine. Link: www.numericalinsights.com/store
Very informative video,
What is the equation for Maximum daily demand
Hello Amr. You can determine your own formula or to save time, the template is available for purchase to follow along step-by-step with the videos. You can find the template on the following page.
Link: www.numericalinsights.com/courses
Scroll down on that page and look for "Inventory Management Template with Video Explanations."
How did u calculate Maximum Daily Demand
Video Correction In both the Part 1 and Part 2 videos, Column N should say that it's based on the forecast, not the sales history.
hello Tracey. Is this file is free to download?
If you watch parts 1 and 2, you should be able to build your own file. If you don’t want to build your own file, you can purchase one from my web site here: www.numericalinsights.com/store/safety-stock-and-reorder-point-calculator-excel-template-with-video-instructions
how do you get committed number?
Think of committed as being "committed to customers." The committed value is the number of units you have SOLD to customers but HAVE NOT YET SHIPPED OUT to the customer, so the inventory is still in your possession.
For example, suppose you have ten units of a product in your building.
Your ON HAND = 10 units.
Now suppose two of those units have been sold to customers but you haven't sent them out to the customer yet. Essentially two units are promised to customers.
Your COMMITTED = 2 units.
That leaves an additional 8 units that you can sell to other customers (10 - 2).
That makes your AVAILABLE = ON HAND - COMMITTED = 8 units.
I hope that helps.
@@TraceySmith thank you! i understand now😄😄
Mam, can you share this excel. Pls?
That excel file and my other templates are available for purchase at the following link. You can also use the Part 1 and Part 2 videos to build your own template just like mine.
Link: www.numericalinsights.com/store