Spreadsheet Models for Managers


Getting Access to Spreadsheet Models for Managers


If Spreadsheet Models for Managersyou use Excel to model businesses, business processes, or business transactions, this course will change your life. You’ll learn how to create tools for yourself that will amaze even you. Unrestricted use of this material is available in two ways.

As a stand-alone Web site
It resides on your computer, and you can use it anywhere. No need for Internet access.
At this Web site
If you have access to the Internet whenever you want to view this material, you can purchase on-line access. Unlimited usage. I’m constantly making improvements and you’ll get them as soon as they’re available.

To Order On Line

Order "Spreadsheet Models for Managers, on-line edition, one month" by credit card, for USD 69.95 each, using our secure server, and receive download instructions by return email.
Order "Spreadsheet Models for Managers, on-line edition, three months" by credit card, for USD 199.00 each, using our secure server, and receive download instructions by return email.
Order "Spreadsheet Models for Managers, downloadable hyperbook edition" by credit card, for USD 199.00 each, using our secure server, and receive download instructions by return email.

To Order by Mail

Make your check payable to Chaco Canyon Consulting, for the amount indicated:
  • For the download: USD 199.00
  • For access online for three months: USD 199.00
  • For access online for one month: USD 69.95
And send it to:
Chaco Canyon Consulting
700 Huron Avenue, Suite 19C
Cambridge, MA 02138

To use the course software you’ll need some other applications, which you very probably already have. By placing your order, you’re confirming that you have the software you need, as described on this site.

Spreadsheet Models for Managers

Inventory cost factors (2) 11/6
Session Links
No more pumpkins — all sold out
  • Costs of stockouts
    • Lost sales
    • Lost customers
    • Idle time (no parts ⇒ idle assembly lines)
    • Idle workpieces in process
    • Back-order/expedite cycle
  • Size of order
    • Quantity discounts
    • Freight
    • Insurance
    • Security

Knowing the true cost of inventory is important
even when you outsource it.

Here are some other cost factors that complicate your already-complicated decision. If you reduce inventory, you run the risk of sales or manufacturing disruption due to stockouts. And if you increase order size, you can sometimes get discounts in price, freight, or insurance. Also, the cost-per-unit of security operations generally declines with increasing inventory size.

The ordering decision can thus be so complex that the only way to figure out what to do is to make a graphical representation of your costs, and pick the order point on the basis of the graph.

Last Modified: Wednesday, 27-Apr-2016 04:15:26 EDT

Assuming Constant Demand

Although the assumption of constant demand is critical to justifying the derivation of the formula for Economic Order Quantity, most problems don’t satisfy that requirement in the strict sense. But EOQ is nevertheless a valuable concept in two kinds of circumstances. The first case is when the time scale of the inventory management decisions is much shorter than the time scale of the variations in demand. And the second is when the fluctuations in demand occur much more rapidly than the inventory management decisions.

These two approximations occur repeatedly in modeling problems. Watch for opportunities to apply them elsewhere.