Stock Replenishment across hub locations through Inter-hub inventory transfers

Figure 1: Hub Locations split as clusters with designated primary hubs/Replenishment centers highlighted — — — — Figure 2: Products
Figure 3: Business Operating location — — — — Figure 4: Hub locations divided into clusters

1. Inventory data @T day x pm:

Figure 5: Inventory data — — — — Figure 6: Pivot data

2. Sales data till T day x pm:

Figure 7: Sales data — — — — Figure 8: Pivot data

3. Expected Dump @T day:

Figure 9: Expected Dump

4. Pre-order Sales data@T+1 day:

Figure 10: Pre-order sales data — — — — Figure 11: Pivot data

5. Sales Forecast @T+1 day:

Figure 12: Forecast data

6. Sale Factor:

Figure 13: Sales data — — — — Figure 14: Sales Factor

7. Data Mapping:

Figure 15: Mapping data for matching the data fields from the source with columns in the destination file
. . .
Figure 16: A Screenie of the Excel model
Figure 17: Priority
Figure 18: No of units sold till T-Day 1 pm
Figure 19: No of units present in inventory @ T-Day 1 pm
Figure 20: Expected products to be thrown off at SKU level
Figure 21: Expected closing inventory — — — — Figure 22: Output
Figure 23: Carry forward units — — — — Figure 24: Output
Figure 25: Surplus units — — — — Figure 26: Output
Figure 27: Final surplus units

As the number of excesses at each hub that can be transferred is known now, the next step would be the decision of where and how much to move. It has two business logic, Priority A and Priority B.

Priority A — Hubs that didn’t meet the next day’s pre-order units.

Priority B — Hubs that didn’t carry forward 25% of the units to the next day.

Figure 28: Units short under Priority A — — — — Figure 29: Output
Figure 30: Units that will be left in the hub if after fulfilling Priority A
Figure 31: Units short under Priority B — — — — Figure 32: Output
Figure 33: Units that will be left in the hub if after fulfilling Priority B
Figure 34: Priority A transfer (units)
Figure 35: Priority B transfer (units)
Figure 36: Forecast ratio
Figure 37: Surplus transfer
Figure 38: Store to the hub
Figure 39: Units moved from primary hub to other hubs through a delivery partner

A Supply Chain and Data Enthusiast with a Masters degree in Industrial Engineering from Dalhousie University, Canada.

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