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Stage 2 (2022) “Inventory Management”

Professional Excel Templates for your Business

Stage 2 (2022) "Inventory Management"

Inventory Management

Inventory Management is an actual case from the Financial Modeling World Cup 2022, Stage 2 (March 11-14) competition. This case is dealing with inventory forecasting. It was created by Diarmuid Early, World Champion 2021. The case consists of 4 parts and provides some easy points too. We recommend you review LIFO and FIFO methods of inventory accounting to solve this case in full.

Case description:

Silico LLC, a manufacturing company, is considering producing a new line of specialized machines. The objective of the case is to create a model to help assess their options by designing a quarterly model for the 10 years from 2023 to 2032, based on the assumptions provided.

Silico LLC wants to avoid building up too much inventory, which would hurt their investor’s returns. The company expects demand for the machines to grow rapidly. The challenge is to find the right balance between meeting the expected demand and avoiding building up too much inventory.

The downloadable file consists of the following:
Task: PDF file with Case Materials; PDF file with Questions; Excel file with case assumptions
Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold

This model awarded 500 regular points + 150 Extra Points for the bonus questions, while the whole 2h Stage allowed to earn 1,150 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at info@fmworldcup.com
You can also buy tickets to participate in the future FMWC Stages here.

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