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21. Real-World Project Briefs

21.3 Inventory Reorder Sheet

The ask. Salman manages stock at a fictional Nashik dark store. Every morning he wants a list of SKUs that have reached the reorder point, with a suggested order quantity, so the purchase order goes out before noon.

Sheet Stock, A1:F6 (fictional):

A: SKU B: On hand C: Avg daily sales D: Lead time (days) E: Safety stock F: Max stock
Poha 1 kg 40 12 3 10 120
Gokul Cow Milk 500 ml 90 60 1 30 200
Nashik Grapes 500 g 25 15 2 10 80
Ladi Pav (6 pcs) 70 30 1 15 120
Chitale Bhakarwadi 250 g 55 5 4 8 60

What to deliver (one under the other):

  1. Make the range a Table named tblStock.
  2. Add Reorder point = Avg daily sales × Lead time + Safety stock.
  3. Add Action: "Order" when On hand is at or below the reorder point, else "OK".
  4. Add Order qty = Max stock − On hand, only when Action is Order, else 0.
  5. Add Days of cover = On hand ÷ Avg daily sales, one decimal.
  6. Filter Action = Order and copy the list into the purchase order.

Key formulas (row 2; copy down or let the Table fill them):

G2: =[@[Avg daily sales]]*[@[Lead time (days)]]+[@[Safety stock]]
H2: =IF([@[On hand]]<=[@[Reorder point]],"Order","OK")
I2: =IF([@Action]="Order",[@[Max stock]]-[@[On hand]],0)
J2: =ROUND([@[On hand]]/[@[Avg daily sales]],1)

Expected result (check your numbers):

SKU Reorder point Action Order qty Days of cover
Poha 1 kg 46 Order 80 3.3
Gokul Cow Milk 500 ml 90 Order 110 1.5
Nashik Grapes 500 g 40 Order 55 1.7
Ladi Pav (6 pcs) 45 OK 0 2.3
Chitale Bhakarwadi 250 g 28 OK 0 11.0

SKUs to order today: 3. Total units on the purchase order: 245.

Checks before you send it:

  1. Lead time is in days, the same unit as daily sales.
  2. Order qty is 0 for every OK row.
  3. Milk (lead time 1 day) is checked every morning, not weekly.
  4. Days of cover is shown with one decimal.

Ravindra Bagale's Tip

A big on-hand number feels safe, but read it with days of cover. Bhakarwadi with 11 days of cover is money sitting on the shelf.

Loading practice tasks...

  1. Total deals won (Easy): Add up Deals won in D2:D11.
  2. Average avg deal value (Easy): Average of E2:E11, rounded to 2 decimals.
  3. Rows in North (Easy): How many rows have Region "North"?
  4. Largest deals won (Easy): The largest value in D2:D11.
  5. Deals won for North (Medium): Total of D2:D11 where B is "North".
  6. North in Manchester (Medium): Total of D2:D11 where B is "North" and C is "Manchester".
  7. Best in North (Medium): Largest E2:E11 value where B is "North".
  8. Value of row 2 (Medium): D2 times E2.
  9. Look up Vikram Singh (Medium): The Deals won for "Vikram Singh" (use a lookup on column A).
  10. Total value (Hard): Sum of D times E for all rows.
  11. Share of North (Hard): Share of D2:D11 that is "North", rounded to 3 decimals.
  12. Rank of row 2 (Hard): Rank of D2 among D2:D11 (largest = 1).
  13. Above average? (Hard): "Above" if E2 is above the average of E2:E11, else "Below".