Analysis for Inventory Control and Management

Case Study: Inventory Analysis in Tableau

Iason Prassides

Content Developer, DataCamp

Analysis workflow

Data analysis process, with only the analyze and visualize data section highlighted.

Case Study: Inventory Analysis in Tableau

Preliminary results

 
A bar chart showing the percentage of total revenue for 2020 and 2021 by product.

 

  • The United Kingdom was the country with the most orders placed
  • Decoration has average COGS in 2020 of $4.8K
  • Profit dominated by Home accessories in 2020, with $110K
Case Study: Inventory Analysis in Tableau

Inventory analysis metrics

More insightful calculations:

  • Average inventory value
  • Inventory turnover
  • ABC analysis

Cartoon image of a man carrying out calculations on a large calculator.

Case Study: Inventory Analysis in Tableau

Average inventory and turnover

 

Average inventory value

 

$\frac{Starting\;value\;+\;Ending\;value}{2}$

 

Case Study: Inventory Analysis in Tableau

Average inventory and turnover

 

Average inventory value

 

$\frac{Starting\;value\;+\;Ending\;value}{2}$

 

 

Inventory turnover

 

$\frac{COGS}{Average\;value\;of\;inventory}$

1 https://www.investopedia.com/terms/i/inventoryturnover.asp
Case Study: Inventory Analysis in Tableau

ABC analysis

Technique that helps you prioritize inventory management by classifying your items into three categories: A, B, and C.

  • Similar concept to Pareto principle

Four steps:

  1. Revenue

  2. Percent of total revenue

  3. Cumulative increase

  4. ABC

  Graph showing the distribution of items classified using ABC analysis, and the cumulative percentage of total revenue.

1 Handanhal and Misra (2014). ABC Analysis for Inventory Management: Bridging the Gap between Research and Classroom.
Case Study: Inventory Analysis in Tableau

Let's practice!

Case Study: Inventory Analysis in Tableau

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