How to convert raw material into finished product such that the availability in days for all product will be maximum

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How can I distribute 5000 Jars into finished product. Such that the all three product will become 0 after particular days.

I had a problem where I want to convert my available raw materials into finished products. We have our own brand which is into female beauty product. There are multiple products in our brand and there are chances that the same raw material are used for different product with different label. For example, We can have multiple product having the same jar with different raw material in it.

Now let me explain my problem, I have 3 products that are having the same jar but the material filled in these jars and label are different. My finished/sellable product will be a complete product with jar, material and label on it.

Next we are having Daily Run Rate (DRR) of product. It means how many quantity of product do we sell daily from our store. So as explained, we have 3 product and their DRR as below. (DRR is calculated on last 30 days stock consumption)

+-----------------+-------------+
|    Product      |     DRR     |
+-----------------+-------------+
| Product1        | 100 qty/day |
| Product2        | 50 qty/day  |
| Product3        | 20 qty/day  |
+-----------------+-------------+

Now we have available finished product stock with us for this 3 product

+-----------------+------------+
|    Product      | Stock(qty) |
+-----------------+------------+
| Product1        | 2000 qty   |
| Product2        | 1000 qty   |
| Product3        | 1000 qty   |
+-----------------+------------+

As shown in the table above, there are 4000 finished products which means that there are 4000 jars that are converted to finished product. Apart from finished product I have 5000 more jars available with me.

I want to convert this 5000 jars into finished product such that all the stock will get finished after some specific days.

For example, I am having 2000 Product1 finished product and its DRR is 100. So I am having the stock of Product1 for 20 days. Same for others as below.

+-----------------+-----+------------+-------------+
|    Product      | DRR | Stock(qty) | Stock(days) |
+-----------------+-----+------------+-------------+
| Product1        | 100 |       2000 | 20 Days     |
| Product2        |  50 |       1000 | 20 Days     |
| Product3        |  20 |       1000 | 50 Days     |
+-----------------+-----+------------+-------------+

Here I need to do stock planning and for that I want to convert 5000 available jars into finished product in such a way that at particular date my all stock will be completed. So that before 15 days of completion of my stock I can plan for other stock.

For example on today I am having stock of each product available for different days like Product1 for 20 days, Product2 for 20 days and Product3 for 50 days. So after converting my 5000 Jars into finished product. My Product1, Product2 and Product3 will be available for approximately some (x) days. This is what I want to achieve. I want the formula to calculate (x) days so that I can code the same in my code to display the same.

Below information will be displayed to user on screen.

  1. Available Finished product stock and stock in days.
  2. Available raw stock. And a text box where the user will enter the stock he/she want to convert to finished product. For example 7000 jars are in stock and user choosed to convert only 5000 jars to finished product.
  3. If user choose to convert 5000 jars to product. Then after converting jars to finished product. For how many days the stock will be available.
  4. Every day the availability of stock will change as per DRR

Note:

  1. DRR is calculated on the basic of stock consumed in last 30 days. (DRR can change everyday).
  2. Consider that apart from jar all other raw material are available in excess quantity.
stock math java
1 Answers

Let's call the products A, B and C. Corresponding numbers of jars at time t is called a(t), b(t) and c(t) where t is the number of days from today. These numbers today can then be written as a(0), b(0) and c(0). Let's call the corresponding DRR's drr(A), drr(B) and drr(C). The number of jars produced is denoted as p(A), p(B), p(C).

If you don't produce additional jars today, then the number of jars on day t in the future (based on current DRR's) will be:

a(t) = a(0) - drr(A)*t
b(t) = b(0) - drr(B)*t
c(t) = c(0) - drr(C)*t

If we produce some jars today, then we can take this into account in the above formula's:

a(t) = a(0) + p(A) - drr(A)*t
b(t) = b(0) + p(B) - drr(B)*t
c(t) = c(0) + p(C) - drr(C)*t

We aim to have a t where all jars are sold. This means a(t) = 0, b(t) = 0 and c(t) = 0. Let's fill this in in the above formula. Also let's fill in the given values for the DRR's and current stocks a(0), b(0) and c(0).

0 = 2000 + p(A) - 100*t
0 = 1000 + p(B) - 50*t
0 = 1000 + p(C) - 20*t

Product C has the lowest DRR and will dictate the minimum time necessary for depleting the stock. To deplete the existing stock of 1000 jars at 20/day will take 50 days. In those 50 days you can sell (fill in t in formula for B) 50*50 = 2500 jars of B. You currently only have 1000, so you need to produce 1500. Applying the same logic to product A: in 50 days you can sell 100*50 = 5000 jars. You only have 2000, so you need to produce another 3000.

More mathematically, above you have three equations with four unknowns. You can reduce the corresponding matrix, which will also give t = 50 days.

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