Equalising Final available quantity-demand percentage for all stores

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In summary, the conversation is about a problem with merchandise allocation. The goal is to allocate units in a way that the final available quantity-Demand% is the same for the maximum number of stores. A formula was found for this, but it was later discovered that it was removing existing units from some stores. The person is looking for a solution and has attached an excel sheet for reference.
  • #1
sganesh88
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I encountered a problem related to merchandise allocation. We are given the present available quantity of an item and its demand for every store. Quantity to be allocated is also given. The requirement is to allocate units in such a way that the "final available quantity-Demand%" is the same for maximum number of stores.

I initially found with great ease a formula for the final percentage.

Final Quantity-Demand% = (Quantity to be allocated+sum of existing quantities from all stores)/(sum of demands for all stores)

But when i tried different sets of data, i found to my utter dismay that in the process of making all the quantity-Demand% same, the formula is removing existing units from some of the stores which shouldn't be done.

Is there a logic that can make this simple? Please refer the template excel sheet below, that could make the problem still simpler if you haven't got a clear idea yet.

See the attached sheet--> View attachment problem.xls
 
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  • #2
can someone give it a thought please? I am breaking my head on this! :)
 

What is Equalising Final available quantity-demand percentage for all stores?

Equalising Final available quantity-demand percentage for all stores is a process used to balance the available quantity of a product with the demand for that product across all stores. It ensures that each store has a similar percentage of available products compared to their demand.

Why is Equalising Final available quantity-demand percentage important?

Equalising Final available quantity-demand percentage is important because it helps to prevent overstocking or understocking of products in different stores. This can help to maximize sales and minimize losses for a company.

How is Equalising Final available quantity-demand percentage calculated?

The calculation of Equalising Final available quantity-demand percentage involves dividing the available quantity of a product by the demand for that product in each store, and then finding the average percentage across all stores. This average percentage is then used to adjust the available quantity in each store.

What are the benefits of Equalising Final available quantity-demand percentage?

The benefits of Equalising Final available quantity-demand percentage include improved inventory management, increased sales, and better customer satisfaction. It also helps to reduce the risk of overstocking and understocking, which can lead to financial losses for a company.

What are the potential challenges of implementing Equalising Final available quantity-demand percentage?

One potential challenge of implementing Equalising Final available quantity-demand percentage is the availability and accuracy of data. It requires reliable data on product availability and demand in each store. Another challenge could be resistance from store managers who may feel that their store's unique demand patterns are not being considered. Additionally, the process may require a significant amount of time and resources to implement effectively.

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