Best Practices

Inventory Optimization Tool in Excel by SCMDOJO

Inventory is the lifeblood of every wholesaler, distributor, or manufacturer. It is essentially money sitting in the form of the product you are selling. Inventory comprises an important part of current assets, particularly in the manufacturing industry making Inventory Optimization a must have process.

A lot of cash flow is committed to inventories so as to ensure a smooth flow of production to meet a demanding customer service level. However, maintaining inventory also involves holding or carrying costs along with opportunity costs. Therefore, identifying inventory reduction strategies or inventory optimization becomes critical for supply chain and operations professionals.


Inventory Optimization is a time-consuming task. I remember my days as a planner when every 3 months I had to download data from the ERP system, then put it into the structure and then identify E&O, recalculate Safety Stock, identify changes in Made-to-Stock, Made-to-Order, and redo the whole ABC analysis. It used to take me 3-5 days of dedicated effort.

To help SCMDOJO Community we have developed an inventory optimization tool in Excel that will do all that and more in minutes & hours rather than days, and in less than $50! NO need to pay hundreds of thousands of $$ to software companies.

Output You Will Get from Inventory Optimization Tool

 Inventory Optimization Tool

Executive Summary of Inventory Segmentation & Analysis Provided by Inventory Optimization Tool


Inventory Tool


What Files You Will Get Once Purchased.


  • Inventory Optimization Tool in Excel (Filename: Model)
  • Input Template (Filename: Input)
  • Inventory optimization Tool Work Instructions DIY (do-it-yourself) Training Document (Filename: Training Document SCMDOJO)

Introduction & Tutorial on How to Use The Inventory Optimization Tool

You can also take advantage of the bundle offer to get below two Inventory Management related Guides at a 33% discounted price.


The Ultimate Guide to Inventory Planning Methods

The objective of this guide is to describe the present use, application and characteristic of selecting various inventory planning methods, and to explain how the methods are applied by the supply chain professionals.



This Excess and Obsolete Inventory Policy provides guidance for shrinkage, obsolescence and excess inventory in the inventory allowance accounts on their ledgers.

Excess and Obsolete Inventory Policy


Files Included

1 Inventory Optimization Model-Final.xlsm 326.21 KB
2 Inventory Optimization Input file. 210.83 KB
3 Inventory optimization Tool Work Instructions DIY 1.37 MB
4 Inventory optimization Tool Work Instructions DIY -PDF 796.47 KB
2.67 MB