Spreadsheet models for inventory target setting at Procter & Gamble

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.