Code
Optimizing Inventory for a Milan D2C Cosmetics Brand
Overview
What this challenge is about.
You are provided with 12 months of daily sales data for 10 SKUs, including unit price, cost, lead time, and current inventory. Your task is to develop an Excel-based inventory optimization model that uses exponential smoothing for demand forecasting and calculates safety stock based on service level targets (95% for bestsellers, 85% for others). Implement a VBA macro that allows the user to input a new service level and automatically updates reorder points and order quantities. Success means the model reduces stockouts by at least 20% and inventory holding costs by 15% in a simulated test scenario.
The Brief
What you'll do, and what you'll demonstrate.
Design a spreadsheet model with VBA automation to optimize inventory levels, reducing stockouts and holding costs for a D2C cosmetics brand.
Earning criteria — what you'll demonstrate
- Apply exponential smoothing for demand forecasting in Excel
- Implement safety stock and reorder point calculations using VBA
- Automate repetitive tasks with VBA macros
- Analyze trade-offs between service level and inventory costs
Program Fit
Where this fits in your program.
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Skills
Skills you'll demonstrate.
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