EIM Version 3 Spreadsheets are an exciting tool that implements the principles of effective inventory management. This version of the spreadsheet features our newly designed EIM Inventory Performance Simulator that combines the analysis performed by several of our individual spreadsheets into one! It also allows you to perform the analysis for up to 100 items at a time just by loading your data into a single worksheet.
The EIM Version 3 Spreadsheets contains:
- EIM Inventory Performance Simulator
- Four additional Excel®spreadsheet templates:
- Price Break (Item)
- Price Break (Vendor Line)
- Price Break (Terms – Freight)
- Value of Lost Inventory
EIM Version 3 Spreadsheet — New Features
- Performs forecasting analysis on up to 100 items at a time (instead of one item at a time) by just loading your data into one single worksheet. In one data entry action, automatically populate data and calculation fields on several worksheets, which previously had to be done separately.
- Provides current forecasting and suggested replenishment parameters for all 100 items.
- Compares your current inventory value to an ideal inventory investment.
- Modify parameters to calculate how much inventory is needed to achieve a desired level of customer service.
- New Price Break with Freight Allowance and Terms Spreadsheet which allows you to consider freight, terms discounts, and extended terms in deciding which of three entered purchase quantities represents your “best buy” quantity.
The spreadsheet templates, instructions, and visuals can be delivered to you electronically or by mail on CD along with a binder including copies of the spreadsheets and instructions.
Perform forecasting analysis on up to 100 items at a time by just loading your data into one single worksheet. With one data entry action, automatically populate data and calculation fields on several worksheets that previously had to be done separately.
Areas of analysis include:
- EIM Performance Simulator
- Differentiate types of usage.
- For items with recurring usage:
- Identify the best forecast formula from nine methods preloaded into the spreadsheet,
- Calculate the forecast and suggested replenishment parameters:
- For items with sporadic usage:
- Calculate normal quantity sold/used in one transaction as well as minimum and maximum quantities.
- Compare your current inventory value, turnover and return on investment to potential “ideal” values. You can then see how varying safety stock and other parameters affect your service level and inventory investment:
- Employ user-maintained controls to smooth out unusually high or low usage:
- Graphically review the history and suggested replenishment parameters of a specific item, comparing the results of all 11 forecasting methods:
- Compare the current and potential values of these key metrics:
- Inventory turnover
- Turn/earn index
- Gross margin return on investment
- Adjusted gross margin (i.e., gross margin considering your average inventory investment)
- Percentage of excess inventory
- Planned excess (i.e., what vendors force you to buy in excess of what you need)
The new EIM Version 3 Spreadsheet release also includes the following spreadsheets to enhance your inventory decisions:
- Price Break by Item
If a vendor offers you a lower price per piece for a larger purchase quantity, is it a good deal?This spreadsheet helps you make an intelligent decision. It compares the lower cost per piece to the cost of carrying inventory for a longer period of time. It also takes into account the lower reordering cost per unit resulting from the purchase of larger quantities. The price break that provides the lowest Total Cost/Piece (last column) represents the best buy quantity.
- Price Break by Vendor Line
Compares the discount you receive to the cost of carrying each purchase quantity for the length of time necessary to sell the entire amount (based on your current overall forecast for the vendor line). The result is a calculation of how much each dollar’s worth of inventory costs when you consider both the discount and the carrying cost. The lower the cost of a dollar’s worth of material, the better the deal.
- Price Break with Freight Allowance and Terms
Allows you to consider freight, terms discounts, and extended terms in deciding which of three entered purchase quantities represents your “best buy” quantity.
- Value of Lost Material
Determines the amount of additional sales your company must generate to make up for the value of material that was lost, stolen, or is otherwise unusable.
Each spreadsheet template uses usage and other data you input or download from your computer system to provide you with the guidance you need to maximize the profitability and productivity of your inventory investment.
Adapt our formulas into your own spreadsheets or EIM can develop customized spreadsheets to adopt the concepts and principles of effective inventory management to your entire inventory, addressing your organization’s specific needs.
Please contact us for more information on how we can customize these spreadsheets for your organization.