Developing A Computerized System For Inventory Control Using Excel: A Case Study
- 1. Developing A Computerized System For Inventory Control Using Excel: A Case Study SUPERVISED BY MD. SAIFUL ISLAM Assistant Professor Department of Industrial Engineering and Management SUBMITTED BY MD. AKIBUL ISLAM Roll: 1411018 MD. MANOARUL AMIN HAWLIDER Roll: 1411031 Khulna University of Engineering & Technology
- 2. MOTIVATION Microsoft excel is becoming user friendly and it is possible to develop different system by using it. So, it can be implemented on inventory management to get dynamic result.
- 3. OBJECTIVES • To keep optimum inventory to meet customer demand. • To minimize the inventory cost.
- 4. Forecast Methods 1 2 3 4 5 Naïve Method Moving Average Weighted Moving Average Exponential Smoothing (α=0.2) Exponential Smoothing (α=0.3) 3
- 5. Error =Forecast - Demand 𝑀𝑆𝐸 = (𝐸𝑟𝑟𝑜𝑟)2 𝑛 − 1 𝑠 = 𝑀𝑆𝐸 UCL =+zs MSE= Mean Square Error LCL =-zs UCL LCL errors FORECAST ACCURACY CHECK
- 6. Point beyond a control limit UCL LCL
- 7. Non Random Errors UCL LCL Fig: TrendFig: CyclingFig: Bias
- 8. A-B-C Approach All products A (Value = 70-80%) B (Value = 10-20%) C (Value = 5-10%)
- 9. EOQ 𝑄 = 2𝐷𝑆 𝐻 𝑇𝐶 = 𝑄 2 𝐻 + 𝐷 𝑄 𝑆 S= Ordering Cost H = Holding Cost OPTIMIZE
- 10. Risk of a stockout Service level By using service level, we will get the value of z σ = Standard deviation of lead time demand Safety Stock = z×σ Safety Stock
- 11. Inventory of the Company Raw Materials Finished Goods BOM
- 12. Group Reedisha, Bhaluka, Mymensingh The Inventory of Fabrics
- 13. Group Reedisha, Bhaluka, Mymensingh The Inventory of Button, Rivet & Tags
- 14. Safety Stock EOQBOM ABC Approach Forecast Analysis The Forecast of goods The Forecast of goods The required quantity of raw materials The required quantity of raw materials Data Flow In the System
- 15. Presentation on the Inventory Control system that we have developed
- 23. 5,50,994.19 9,22,676 TC by EOQ TC by Company TC by EOQ TC by Company TOTAL COST FOR 21th PERIOD (ORDERING & HOLDING COST IN TK)
- 24. 1. Demand should be constant over time. 2. The best forecasting method needs to be selected manually. 3. A minimum of 15 periods demand are needed to run the program. 4. Quantity discount is not allowed. 5. Order quantity should be constant over specific time period. Limitations
- 25. An inventory management system becomes costly for the computer functioning calculation. The Microsoft excel is very common one that is used in the normal days. As the program is completely done in excel, this can be used in every official or non- official production farms in the world. With a simple knowledge in excel, anyone can operate the system on their own hands. Conclusion