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Retail & Allocation lesson

Rebalancing rules

Stock moves only inside a region, and each region aims for its own cover.

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About 5–10 minutes · no sign-up needed

The idea

Stock moves only inside a region, and each region aims for its own cover:

Formulas

Region's stock ÷ Region's weekly sales
Region's cover × Weekly sales − Stock

Key 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

Try each one in your head first, then open the answer.

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 weeks
3. The West's cover is 4 weeks. In E7, work out Victoria's units to move.
=4*D7-C7
4. 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.

Try this lesson free →
About 5–10 minutes · no sign-up needed