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Consumption function
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Consumption function
Ron Rosenfeld wrote:
On 16 Nov 2005 10:55:11 -0800,
wrote:
I work in stock control and want to add a function in excel which works
out how many weeks stock I have versus sales in a range
eg if stock is 100 and the next 4 weeks sales are 40, 20, 20, 30
then I have 3.66 weeks stock
this is 40+20+20 = 3 weeks
and the remainder 20 as a percentage of 30 = 0.66
Any help would be much appreciated.....
thanks
Andy
Your rate of decrease is not constant.
I would think that the number of weeks of stock would be the point where the
graph of inventory vs. time crosses the y-axis -- in other words look at the
slope of your inventory curve and, using linear regression, compute the point
at which the curve crosses the 0-value on the y-axis.
The formula for that line would be y=mx+b
If y = 0, then
mx = -b
x = -b/m
LINEST gives you the values for m and b (base 1) so you'd have to subtract 1
from the results to get a base 0 result.
Therefore a formula could be constructed as follows:
Put your weekly sales in A1:A4
B1: 100
B2: =B1-A1
Copy/Drag down to B5 giving the following results:
B1: 100
B2: 60
B3: 40
B4: 20
B5: -10
Then use the following equation:
=-1-INDEX(LINEST(B1:B5),2)/LINEST(B1:B5)
or 3.615 weeks.
--ron
thanks Ron
tried this but does not work with other data eg
stock = 24,717
sales = 11,832 123,377 71,386 31,564
projected stock = 24,717 12,885, -110,492, -181,878
result = 0.64
I estimate this should be 1.1 weeks stock????
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