When generating a supplier order for the warehouse in a Picking scenario, MySales considers not only the current DC stock balance but also the projected warehouse stock balance up to the next delivery.

This makes it possible to account for a situation where Out-of-Stock (OOS) has already occurred at the warehouse or the product will run out in the coming days. In this case, some Picking orders from the DC to stores may not be fulfilled, and the actual store stock balances will be lower than expected.

MySales accounts for this effect when calculating the next supplier order.

Why the projected warehouse stock balance is needed

Let us consider a typical situation:

OOS has already occurred at the warehouse, or stock is expected to be depleted in the coming days;
the DC will not be able to fully meet the stores’ ordered requirements;
stores will receive less product than planned;
their stock balances will begin to decrease faster;
due to lower stock, subsequent store orders will increase.

If this effect is not taken into account when generating the warehouse order, the network’s future requirements may not be fully reflected.

How the calculation works

When generating a supplier order, MySales calculates the projected warehouse stock balance and assesses whether the DC will be able to fulfil the stores’ Picking orders up to the next delivery.

The logic can be presented as follows:

Current DC stock balance
↓
Store Picking orders
↓
Projected warehouse stock balance
↓
Check for possible OOS
↓
Identification of store orders that may remain unfulfilled
↓
Adjustment of warehouse requirements
↓
Supplier order

What happens when OOS is projected

If DC stock will be insufficient up to the next delivery, the system takes into account that some store Picking orders may not be fulfilled.

As a result:

the planned replenishment of stores will not take place in full;
store stock balances will decrease faster;
their next requirements will increase;
this change is taken into account when calculating the warehouse order.

Thus, MySales accounts for the projected shortage even before its consequences are fully reflected in subsequent store orders.

Key principle

When calculating the warehouse order, the system takes into account that store orders up to the next delivery to the warehouse may not be fulfilled due to insufficient DC stock.

Therefore, MySales does not rely solely on the assumption that all Picking orders already generated will be supplied.

The system considers the projected warehouse state and accordingly adjusts the quantity of the supplier order.

Full process logic

Store Picking requirements
↓
Projected DC stock balance
↓
Possible OOS at the warehouse
↓
Some Picking orders cannot be fulfilled
↓
Stores receive less product
↓
Their stock balances decrease faster
↓
The stores’ next requirements increase
↓
MySales adjusts the warehouse order

Result

Calculating the projected stock balance allows MySales to account not only for current store requirements but also for the consequences of a possible shortage at the DC.

The system considers:

the current and projected warehouse stock balance;
possible OOS before the next delivery;
store Picking orders that may remain unfulfilled;
a further decrease in store stock balances;
an increase in their next requirements.

As a result, MySales answers not only the question:

“How much product does the warehouse need now?”

but also takes into account:

“How will the network’s requirements change if the DC cannot fully supply stores before the next delivery?”

A detailed calculation example can be found in the attached file.