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Retail Supply Chain lesson

Excess and aged inventory

Excess is anything above the target cover, here 6 weeks. Aged stock is anything older than 26 weeks.

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About 5–10 minutes · no sign-up needed

The idea

Excess is anything above the target cover, here 6 weeks. Aged stock is anything older than 26 weeks:

Formulas

On hand − Weekly sales × 6

Key points

ExcessOn hand − Weekly sales × Target weeks.
Aged %Aged units ÷ On hand × 100.
What to doStop replenishing, move it to short markets, or mark it down.

Excess ties up cash and space. Aged stock risks markdowns or write-offs.

Practice

Try each one in your head first, then open the answer.

1. How many units of excess does the US have, above 6 weeks of cover?
2,000 − 250 × 6 = 500 units
2. In D3, work out the US excess over 6 weeks: on hand − weekly sales × 6, and never below 0.
=MAX(0,B3-C3*6)
3. What % of Germany's stock is aged?
270 ÷ 900 × 100 = 30%
4. Germany has 9 weeks of supply and 30% aged stock, while Canada is running short. What's the best action?
Move Germany's stock to Canada and pause Germany's orders

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed