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Retail & Allocation lesson
Rebalancing rules
Stock moves only inside a region, and each region aims for its own cover.
Try this lesson free →The idea
Stock moves only inside a region, and each region aims for its own cover:
Formulas
Region's stock ÷ Region's weekly salesRegion's cover × Weekly sales − StockKey points
Same regionMoving stock across the country costs more than it earns. Stores share stock with their own region.
Region's coverEast: 200 ÷ 100 = 2 weeks.
Units to moveMontreal: 2 × 40 − 20 = +60.
Minimum moveUnder 12 units isn't worth the freight, so small moves stay put.
Plus means receive, minus means send. Inside each region the moves add up to about zero: rebalancing shifts stock, it doesn't add any.
Practice
1. Montreal needs stock. Tap the store that should send it some.
Halifax is in the East and holds 8 weeks: far more than its 2.2. The West's stores hold 300 units and sell 75 a week together. What is the West's cover, in weeks?
300 ÷ 75 = 4 weeks3. The West's cover is 4 weeks. In E7, work out Victoria's units to move.
=4*D7-C74. The smallest move worth making is 12 units. Tap the store whose move is too small to make.
Calgary would only send 8: not worth the freight.Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.
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