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MBE 7 Column L Demand Filled, the number of orders filled each month If demand is less than or equal to the available inventory, the
MBE Column L Demand Filled, the number of orders filled each month
If demand is less than or equal to the available inventory, the entire demand is satisfied. If
demand exceeds the available inventory, only the demand up to the available inventory is
satisfied.
In L enter: MINAvailable Inventory for month Demand for month
You are to write the formula for L yourself copy it to L thru L
Column M Ending Inventory, the number of units carried over to the next month
If the demand is less than or equal to the available inventory units, carry over the remaining
inventory to the next month, otherwise there is no inventory to start the next month
M MAXAvailable Inventory for month Demand Filled for month
You are to write the formula for M yourself copy it to M thru M
We use this max function so that we never try to carry a negative inventory; note that
demand not satisfied is not backordered, the sale is simply lost
Column N Stockout, the number of orders not filled
If the demand exceeds the available inventory we have a stockout; if demand is less than
available inventory there is no stockout
N IFDemand for month Available inventory for Month
Demand for Month Available inventory for Month
You are to write the formula for N yourself copy it to N thru N Adding more constraints can lead to a more optimal answer:
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