Store Stock Redistribution

In this article

To set up Store Stock Redistribution

To calculate Store Stock Redistribution

See also

Store Stock Redistribution is part of the Replenishment suite which is fully integrated in LS Central. Replenishment is a key component in LS Central as it ensures that the right items are at the right place at the right time. Replenishment achieves this by calculating and proposing Purchase Orders and Transfer Orders for warehouse(s) and stores.

Purchase Replenishment Journals and Transfer Replenishment Journals support processes for reoccurring items, which are purchased and delivered either to a warehouse or directly to the stores. Demand in the stores is either fulfilled with Transfer Orders from the warehouse(s) or via Purchase Orders for direct deliveries from the vendor to the store.

Store Stock Redistribution introduces Redistribution Replenishment Journals, which support the replenishment of stores from other stores and/or warehouses. The journal also supports the redistribution between warehouses. This is useful for example for items which are purchased only once, like many fashion items. Another example is the items at the end of their lifecycle - no more stock will be purchased, but the items exist in the stores and should be sold with minimal discounts. In all these examples, items are spread across the stores, where some stores have more stock than others and some stores have higher demand than others. The new journal calculates proposals to transfer items to stores with a demand and less stock to reduce out-of-stock situations and to increase sales.

Store Stock Redistribution calculates the quantity needed in the stores and warehouses, and suggests what needs to be transferred from other stores and/or the warehouse to fulfill the demand.

This core process is executed in three steps:

  1. The system calculates the demand and excessive stock in the stores and the warehouse.
  2. You can review the calculation result and narrow down the items, stores, or warehouses to be considered.
  3. The system calculates optimal Trips (transfers between locations) to fulfill the demand in the locations.

For more information about the calculation process see Store Stock Redistribution Process.

Store Stock Redistribution provides the following Calculation Types to calculate the supply and demand in the locations:

  • Sales Demand
    This calculation type calculates the sales demand until the end of season, lifecycle, or calculation horizon for the items across stores and warehouses. Based on current stock, expected sales demand, and a buffer value, the system will classify locations into locations with demand or supply.
  • Stock Balancing
    This calculation type calculates the average stock for the items across all stores. Based on current stock and the average stock value, the system will balance the stock between the stores and therefore classify locations into locations with demand or supply.
  • Reorder Point/Max. Inventory
    This calculation type calculates the current stock for the items in the stores and warehouses. Depending on the fields Reorder Point and Max. Inventory and the current stock, the system will classify locations into locations with supply or demand.
  • Manual Redistribution
    This calculation type is similar to the Sales Demand calculation type; the system calculates the sales demand until the end of season, lifecycle, or calculation horizon for the items across stores and warehouses. Furthermore, the system calculates the current variant availability to identify broken variants. This calculation type does not classify locations into locations with demand or supply. The new Retail Item Variant Availability by Location page lets you determine manually how the variants shall be redistributed among the stores.
  • Warehouse to Warehouse
    This calculation type calculates the current stock for the items in the warehouses. Depending on the fields Reorder Point - Whse. and Maximum Inventory - Whse., as well as the current stock, the system will classify locations into locations with supply or demand.

For more information see Redistribution Calculation Types.

The Redistribution Matrix is used to define possible store and warehouse location combinations to calculate Transfer Orders (Trips) in Store Stock Redistribution. This enables a retailer, who has stores in multiple countries for example, to define that only stores within the same country should be considered when the Trips are calculated. The Redistribution Matrix is based on Hierarchies and Hierarchy Relations and allows a top-down definition with inheritance. It is possible to define multiple Redist. Matrices and to assign those to items on detail and group level.

Furthermore, the Redist. Matrix holds information about the transportation cost, distance, and transport duration between the locations. This information is used in different Redistribution Strategies to calculate the optimal Trips combination. Distance and duration can be calculated via Bing Maps API using maps and routes.

For more information see Redist. Matrix.

The following Redistribution Strategies can be used to calculate the trips between the locations:

  • Least No. of Trips
  • Least Cost
  • Shortest Distance (Direct)
  • Shortest Distance (Route)
  • Shortest Duration (Route)

For more information see Redist. Strategies.

The Replenishment processes for Automatic Replenishment are executed at the Head Office. The system can suggest the quantity to replenish according to different calculation types or strategies. Store Stock Distribution is based on the Replen. Item Quantity table, which must be populated before the Redistribution Journal is calculated.

To set up Store Stock Redistribution

The tasks listed below describe the setup steps for Store Stock Redistribution.

To See
Set up the Replen. Setup for Store Stock Redistribution. How to: Set Up Replen. Setup for Store Stock Distribution
Set up Redistribution Templates and Batches. How to: Set Up Redistribution Templates
Set up the Redist. Matrix to define possible trips between locations and to maintain transfer cost, distance, and duration. Redist. Matrix
Set up Lifecycle Curves and assign to items. Lifecycle Curve
Set up Threshold Rules. Transfer and Purchase Thresholds

To calculate Store Stock Redistribution

The tasks listed below describe the process steps for Store Stock Redistribution. For a detailed description of the process see Store Stock Redistribution Process

To See
Calculate the Replenishment Item Quantity. Calculation of Replenishment Item Quantity
Calculate the Redist. Preview from the Redistribution Replenishment Journal. How to: Calculate Redist. Preview
Calculate Trips and Replen. Journal Lines from the Redist. Preview. How to: Calculate Trips
Work with Thresholds for Store Stock Redistribution. How to: Work With Thresholds for Redistribution
Create Transfer Orders from the Replenisment Journal. How to: Create Transfer Orders
Execute Transfer Orders from the Role Center. How to: Execute Transfer Orders for Redistribution

See also

Automatic Replenishment