Download from "The Logistics and Supply Chain Toolkit" by Gwynne Richards and Susan Grinsted

Example of Ballou inventory-throughput curve

1. Original data

Throughput Inventory
Year W/h (£ million) (£ million) Stock turns
2010 1 32.6 3.9 8.4
2 8.3 1.39 6.0
3 12.6 1.2 10.5
4 19.5 3.3 5.9
2011 1 37.4 4.3 8.7
2 9.5 1.1 8.6
3 13.4 2.1 6.4
4 19.8 2.5 7.9
5 5.1 0.73 7.0
6 47.5 4.1 11.6

2. Sort data in order of ascending magnitude in order to obtain scatter diagram

Throughput Inventory 5
Year W/h (£ million) (£ million) 4.5
2011 5 5.1 0.73 4
2010 2 8.3 1.39
3.5
2011 2 9.5 1.1
3
2010 3 12.6 1.2
2011 3 13.4 2.1 2.5
2010 4 19.5 3.3 2
2011 4 19.8 2.5 1.5
2010 1 32.6 3.9 1
2011 1 37.4 4.3 0.5
2011 6 47.5 4.1
0
0 5 10 15 20 25 30 3

3. Now fit logarithmic curve

Chart Tit
5
4.5
4
3.5
3
2.5
2
1.5
1
 4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
0 5 10 15 20 25 30 3

More information about this method can be found in our book or by downloading the tool.
 Scatter diagram

Column D

10 15 20 25 30 35 40 45 50

Chart Title

Column D
Logarithmic (Column D)
 Column D
Logarithmic (Column D)

10 15 20 25 30 35 40 45 50