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This tool is designed to compute optimum inventory level in a manufacturing environment based on customer service level, sales forecast, capacity utilization, and distribution channel. It can be used to estimate optimum level of pre-build stock, safety stock, in-transit stock and cycle stock by SKU class.

While an EOQ inventory model is theoretical in nature, this model is more practical and has been applied to effectively reduce inventory levels at a pharma company in North America.

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Source: Inventory Targets Model Excel document

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Inventory Targets Model

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File Type: Excel (xls)

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Initial upload date (first version): Apr 26, 2014

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