How This Workflow Works
This workflow combines EOQ-based optimization with FIFO inventory aging analysis. It calculates current and optimized inventory costs, estimates potential savings, and identifies products with aged or at-risk stock, all presented through interactive visualizations that support both financial and operational decisions.
Key Features:
- Compare current order quantities with EOQ-recommended quantities
- Calculate ordering cost, holding cost, total inventory cost, and potential savings
- Estimate safety stock and reorder points to support replenishment planning
- Use FIFO logic to analyze batch-level inventory aging and flag slow-moving, aged, and at-risk stock
- Visualize inventory status, EOQ gaps, cost savings, and aging exposure
Step-by-step:
1. Prepare Inventory, Sales, and Product Data:
The workflow loads inventory snapshots, product parameters, sales history, and batch-level data. These datasets are aggregated and merged into a consolidated inventory analysis table.
2. Calculate EOQ and Cost Metrics:
For each product, the workflow calculates the optimal order quantity using annual demand, ordering cost, and holding cost. It then compares the EOQ scenario with the current ordering policy to estimate costs and potential savings.
3. Estimate Replenishment Risk:
Safety stock and reorder points are calculated using demand variability, lead time, and service level assumptions, helping identify products that may need reorder action or carry excess inventory.
4. Analyze Inventory Aging with FIFO:
Batch-level stock movements are resolved to estimate how long remaining inventory has been stored. Products are grouped into aging buckets: recent stock, aging stock, and critical aged stock.
5. Visualize and Share Insights:
An interactive dashboard presents KPI cards, EOQ cost comparisons, inventory flags, and FIFO aging visualizations to help users identify cost-saving opportunities, prioritize aged stock risks, and make data-driven inventory decisions.