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Retail Supply Chain lesson

Excess stock

The target is 6 weeks of cover. Anything on hand above that is excess.

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About 5–10 minutes · no sign-up needed

The idea

The target is 6 weeks of cover. Anything on hand above that is excess:

Formulas

On hand − Weekly sales × 6

Key points

ExcessStock above the target cover: more than the market needs.
Work it outTake the target stock (weekly sales × target weeks) away from what's on hand. Below zero means no excess.
What to doStop ordering, move it to markets that are short, or mark it down.

Excess ties up cash and space that short markets could use.

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. How many units of excess does Nigeria have, above 6 weeks of cover?
900 − 100 × 6 = 300 units
4. Tap the market with the most excess.
The US holds 500 units more than it needs.

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