Complex formula (to me) & don't know where to begin

**judgeh59** · 03-25-2013, 05:56 PM

so here is weird part....so in your worksheet your OHI (OnHandInv) is 400 and your demand for April is 748. That leaves you with 348, under your MOQ(minimum order quantity), so your order 400, now depending on when those come in (leadtime) you now have 748 on hand. So, in May, you can use the OHI of 400, you have to use the OHI of 748 and the demand for May is 350 and would not put you below the MOQ, IF you used the OHI of 400 and then you would order another 400 and have to much inventory and probably increase your DOI (days of inventory)...does this make sense?....

**karmes** · 03-25-2013, 06:13 PM

Originally Posted by judgeh59

so here is weird part....so in your worksheet your OHI (OnHandInv) is 400 and your demand for April is 748. That leaves you with 348, under your MOQ(minimum order quantity), so your order 400, now depending on when those come in (leadtime) you now have 748 on hand. So, in May, you can use the OHI of 400, you have to use the OHI of 748 and the demand for May is 350 and would not put you below the MOQ, IF you used the OHI of 400 and then you would order another 400 and have to much inventory and probably increase your DOI (days of inventory)...does this make sense?....

Oh boy... I was looking at it this way - OHI 400 - 748 = -348 then i order 400 which leaves me with 52 to carry to next month, that won't leave me enough to do next month so I need to actually order 800.

**karmes** · 03-25-2013, 06:25 PM

judgeh59 - i just filled in more of my actual spreadsheet and now I see what you are saying. This formula doesn't take into account if my future demand is less than what I have on hand. If I had 300 OHI but only had requirements going forward for 200, it would say I needed to order because my min was 400 when in fact I don't. I don't want anymore inventory than I absolutely need to have. Now I am thinking the formula/logic is more complicated again.