Rebeca Zepeda
New Member
Need your help with a Formula to calculate month on hand
as follows:
Current total November inventory is 1000
Demand remaining in Nov 500
Demand Dec 400
Demand Jan 300
So with 1000 we cover all Nov remain inventory 1000-500, remaining 500
With 500 we cover December demand 500-400, remaining 100
We don’t cover all January demand , a fraction is then calculated : 100/300= .3333
Therefore total Month on hand is 2.33
as follows:
Current total November inventory is 1000
Demand remaining in Nov 500
Demand Dec 400
Demand Jan 300
So with 1000 we cover all Nov remain inventory 1000-500, remaining 500
With 500 we cover December demand 500-400, remaining 100
We don’t cover all January demand , a fraction is then calculated : 100/300= .3333
Therefore total Month on hand is 2.33