UPDATE 20150916
When I wrote up the description below, I “took it off the top of my head.” Since then, I decided to actually create a mock-up.
I have attached an odg of my ods that may better illustrate my thoughts. In the mock-up, I also used the =VLOOKUP function, some range names, and a few other techniques. If I were going to work further, I would add conditional formatting to the raw material (RM) stock balances so that they would warn if falling below the Re-order Point, or when they reached or fell below zero.
As you can see, however, this is not just a “formula.” I still maintain you would be better off using a database approach – unless you will only have a few entries (and your description indicates many entries over time).
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ORIGINAL ANSWER
Frankly your described need calls for a database application, NOT a spreadsheet application. That said – if you are determined to use a spreadsheet to control your inventory, I would probably consider a scenario similar to the following:
Set up a spreadsheet
Cell A5: “Date”
Cell B5: “Description”
Cell C5: “Txn Type” (Add or Deduct)
Cell D5: “Stock” (FG; Tins; Beans & Sauce; Water – this could be the “drop down box” you mention)
Cell E5: “Qty”
Cell F5: “FG” (Finished Goods Qty)
Cell G5: “Tins” (Qty)
Cell H5: “Beans & Sauce” (Qty)
Cell I5: “Water” (Qty)
The first entry should be:
In Cell A6, enter Current Date
In Cell B6:E9, enter a Description of “Balance Forward” with a Transaction Type of “Add” for each stock item (Enter the current balances of FG and the raw materials)
Cells F2 through I2 should each contain a =SUM formula for sufficient cells in their respective columns to contain transactional activity.
Beginning with Row 6, Cols F:I should contain a formula that calculates a quantity based on the Txn Type (Col C) and the Stock (Col D).
For instance, if Txn Type = “Add” and Stock = “Water” then the formula in the corresponding Water cell for that row would reflect the increase in Qty (Col E).
If the Txn Type = “Add” and Stock = “FG” then the formula in Col F (FG) would reflect an increase based on the Qty in Col E. The formulas in Cols G:I would multiply the units in Qty times the respective raw materials units required for one FG unit. Each of the raw material formulas would be wrapped in a =ROUND function and the sign would be reversed to reflect a reduction in the respective raw material.
A Txn Type “Deduct” and Stock “FG” would result in a Col F deduction by formula of the negative value entered in Qty (Col E).
The =SUM formulas in F2 through I2 will reflect a constantly adjusted current balance for FG and each raw material.
This is a relatively simple layout, but again – you are forcing a spreadsheet to do what would be better accomplished in a database application.
Hope this helps.