Need help on formulating ordering
 

I order from overseas and I need to consider the lead time, transit time with
the inventory I have at the end of each month. For instance I will 57 days
of inventory on 10/27/05 and my required inventory level is 20 days. My
daily usage is 105 and my lead time on the material right now includes lead
time and transit time is 64 days. What formula can I use to show me what to
order now so that I always keep my 20 days of inventory and keep my
production running?

Beginning inventory is 6025 10/17/05
Days on hand is 57
Daily usage is 105
Ideal Inventory is 20 days
I order weekly (Every Wednesday)

Thank you in advance for any help that is provided

How About This:

A B C D
E
1 Current Usage Min. Days Cur. Days Yikes!
2 6025 105 20 =A2/B2
=if(d2<=c2,"Yikes!")
-or-
=if(d2/c2<1.1,"Yikes!","OK")

Hope that helps.

"Angela" wrote:

I order from overseas and I need to consider the lead time, transit time with
the inventory I have at the end of each month. For instance I will 57 days
of inventory on 10/27/05 and my required inventory level is 20 days. My
daily usage is 105 and my lead time on the material right now includes lead
time and transit time is 64 days. What formula can I use to show me what to
order now so that I always keep my 20 days of inventory and keep my
production running?

Beginning inventory is 6025 10/17/05
Days on hand is 57
Daily usage is 105
Ideal Inventory is 20 days
I order weekly (Every Wednesday)

Thank you in advance for any help that is provided

This was a huge help....Thank you pdberger

"Angela" wrote:

I order from overseas and I need to consider the lead time, transit time with
the inventory I have at the end of each month. For instance I will 57 days
of inventory on 10/27/05 and my required inventory level is 20 days. My
daily usage is 105 and my lead time on the material right now includes lead
time and transit time is 64 days. What formula can I use to show me what to
order now so that I always keep my 20 days of inventory and keep my
production running?

Beginning inventory is 6025 10/17/05
Days on hand is 57
Daily usage is 105
Ideal Inventory is 20 days
I order weekly (Every Wednesday)

Thank you in advance for any help that is provided