I was having more fun with Excel today (total nerd, right?) and I decided to make a real simple EOQ program.  It is such a simple thing I even hesitate to call it a program.  Anyways, what it does is calculate how much of your product you need to order and when you should reorder.  Remember to keep consistent units and don’t mess with the green boxes!  See what kind of results you get.  Are they accurate?
Also an important note: If your holding cost is nothing, factor in depreciation or potential cost.  The equation is designed assuming you have product …read more

In a perfect world, we would get perfect answers.  In a perfect world, probability would reign supreme.  We don’t live in a perfect world, though (relatively speaking), so why do you plan like we do?  Entrepreneurs can make huge mistakes by making dumb assumptions.  Let’s say you set a release date for some software you are making – you set the official shipping date t0 January 5, 2008… but you still have some developing to do.  Well according to your plans, you should be done with a week to spare!  Uh oh – you forgot one major, missed assumption.  You’re …read more