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Spreadsheet Models for Inventory Target Setting at Procter & Gamble

Procter & Gamble Services Company NV, Global Business Services–Business Analysis Solutions, Strombeek-Bever, Belgium
Procter & Gamble Services Company NV, Global Business Services–Business Analysis Solutions, Strombeek-Bever, Belgium
Procter & Gamble Services Company NV, Global Business Services–Business Analysis Solutions, Strombeek-Bever, Belgium
farasyn.i{at}pg.com
perkoz.k{at}pg.com
vandevelde.wm{at}pg.com

Spreadsheet models have been instrumental in helping Procter & Gamble (P&G) to set inventory targets. The Global Analytics group of P&G's Business Analysis Solutions organization, an in-house modeling, decision-support, and consultancy group, created global inventory models. The models determine the best inventory levels and yield the required customer-service levels, subject to the characteristics and constraints of a particular supply chain. These spreadsheet models are easy to use and share. Therefore, they have become the standard tool for setting inventory targets at P&G; hundreds of supply chain planners worldwide now use them. They have contributed to inventory reductions of over $350 million and significant intangible benefits.

Key Words: information systems; decision-support systems; inventory/production; applications