12-Month Inventory Re-Stocking and Cash Flow Planning Excel Tool

Inventory is hard. My previous inventory management templates were good at tracking the current state of inventory. This new tool is more of a cash management planner in order to help you know how much cash you need in order to keep up with your product sales forecast. You will also see the amount of reserve/buffer available over time for each SKU.

*Note that you will receive all three versions after purchase (see below for V2 and V3 below). A download link will be sent to you via your PayPal/purchasing e-mail. The inventory re-ordering template is also included on top of these three excel templates. Note, V2-Mod 1 is the version for on-going operations and V2 is the version for startups.

Version 2 - Adding input variables for payment terms, first purchase date, and minimum inventory level

Version 3  - Merging V1 and V2 for the broadest use cases

Update - All Versions Go For 36 Months Now

Recently added charts...

monthly inventory cost visualization
cost by SKU inventory visualization
inventory bar chart forecast
inventory re ordering bar chart

The hardest part of building this model was how to dynamically account for different lead times for different SKU types. I did figure it out so you will see that based on the amount of inventory purchased at each re-order and the number of days it takes for an order to actually reach your inventory, it will show you the timing of when different SKU's need to be purchased and the cash that it takes month to month.

This is important because oftentimes you have to buy ahead of planned demand. The way the 12-month forecast works will take your average sales counts during each month of the year for the past 3 years and then based on a % increase/decrease you enter, it will give you the forecasted unit sales per SKU for the next 12 months. That logic accounts for seasonality factors that cause more or less sales to happen at different times of the year. You need to know how that impacts cash flow.

The cash management then comes into play as it will show the timing of when things need to be bought in order for you to have enough supply for the planned demand. That is huge as the assumptions can cause dramatic fluxes in how much cash you need and when. Often times this is not accounted for precisely and shortages can occur that are hard to fix because of various logistical problems.

The model will aggregate all the data into one monthly cash flow line. For added visibility, you can also see the total sales per your forecasted unit sales counts. This is a really good tool to implement with your other models that may not take into account the nuances of inventory cash requirements over the course of a year. This tool can plug right into your other models as it shows the data on an aggregate monthly basis.

You may also like:
  1. FIFO compliant COGS inventory valuation tool in excel
Screenshots of On-going Operations Version (V2 Mod 1)
inventory forecasting assumptions

sales forecast assumptions

sales growth forecast for inventory

sales per sku

forecasted re-order amounts for inventory forecasting

monthly cash requirement for inventory replenishment

sales and inventory change per month

running inventory balance forecast

sales revenue vs. inventory purchases combo chart

stacked column chart for purchases and sales

Screenshots for V2 (startup version) - Everything is the same except data entry tab
inventory assumptions for a startup