Question of handle negative inventory

  • Thread starter Thread starter xentar
  • Start date Start date
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xentar

Hi All,

I am new to using excel solver to do some inventory managment.

And i faced a problem about handle the negative inventory problem.

The problem is that, if there is sales from Jan, Feb, March.
And the marketing limitation for Jan is 300, Feb is 200, and March is
100.

But since the production limit for the product is 250.
And for the Jan, if we product 250, then the Inventory is 250 - 300,
which is -50. And this values seem that not make sense to mark as the
beginning inventory for Feb.

So, i would like to ask that anyone have suggestion for it without
using any "if" function.

Regards,
Xentar
 
If I understand correctly what you're after is some way to
have zero opening stock when the book opening stock is
negative?
If that's the case, the use function:
=max(OpStk,0)
OpStk pointing to the cell whre the book opening atock
comes from.

If this is not what you want, pls elaborate.

Nikos Y. (nyannaco at in dot gr)
 
Xentar,

You many want to add a "Back Order" column to your data and show the
negative amounts there.

Regards,
Jim Cone
San Francisco, CA
****************
 
Hi All,

First, thanks for you two's help.

Actually, i do want the Nikos description.

But the problem is that, when i try to use excel solver to find out
the maximum profit, the excel solver said the equation using in it is
not linearity.

Actually the question i would like to solve is that, there is
a product to determinate how many to be produced in order to get
maximum profit.

And there is a marketing limitation for it for different month.

Therefore, it needs to set up any equation in the excel to solve by
solver.

Since sometime the number to produce may be more or less than the
marketing limitation. For the case that produce more than the
martketing limitation, it's fine, because the value of the beginning of
the Inventory is positive. But it's worse when it become negative when
the case the number to produce is less than the marketing limitation.
It is the "Back Order" as mention by jim.

And the equation i used in the cell for calculating the ending
Inventory of the month is by

Ending of the Inventory = Number of product to produce -
Marketing Limitation +
Beinging Inventory for the
month

So, I would like to ask is there any linear equation or method that can
make the ending Value of Inventory is zero when it is negative,
otherwise keep the value?

Regards,
Xentar
 
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