Inventory Management 101 - Aging Perishable Inventory
Aged inventory is basically
the products which are either slow-moving and in very low demand, or barely
sell at all. To add to the complication
of age inventory management is Perishable inventory.
A perishable good is any product in which will
be expiry date or due to environmental conditions through time, such as meat
and meat by-products, fish and seafood,
dairy products, fruit and
vegetables, flowers, pharmaceutical products, and chemicals.
For the inventory with expiry
windows after inventory has been received for sales and process, the expiry
windows could be computed and monitored.
Table 1:
Table 1:
The example: A simple computation to monitor the inventory’s
shelf life.
Aging Days is the count days from creation date (inventory received)
to current date
·
Aging Days formula in excel
o
I3=DAYS(TODAY(),E3)
·
Expired (180 days after Creation Date) – this is the shelf life
of inventory is 180 days after the creation date.
o
=IF(I3<$K$1,"OK","Expired")
·
Item A_4, Item A_5, Item A_6 are expired base on the 180 days of
shelf life standard.
About the Author
Grace is a freelancer for Supply Chain Management specialized in
helping companies reducing operation costs and increase profits through optimized
Supply Chain, Sourcing and Procurement Operation.
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