TITLE:
Solving Basic Inventory Models Using Excel
AUTHORS:
Sarbjit Singh
KEYWORDS:
EOQ Model, Production Model, Shortage Model, Discount Model
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.11,
August
6,
2018
ABSTRACT: In this note, I have introduced a simple way to
solve the four basic inventory models using Microsoft excel. This note can be
used in courses like economics, operations management, operations research,
supply chain management. This note can be used in teaching basic inventory
models to avoid the lengthy manual calculation involved in solving them. It can
also be used as an interesting example for an advanced class in Excel. The user
just needs to enter the data in the white cells and all the results are
automatically calculated. We recommend showing students how to first solve the
models by hand (not necessarily the example problem), so that they understand
the procedure, and then show them how to do it using Excel. The four models
considered here are EOQ model, Basic production model, Discount Model and
Shortage Model. Using the excel managers would be able to compare the various scenarios provided by
the organization. They would find it very convenient to use these models.