Order Calculation Formulas
MySales calculates orders taking into account the sales forecast, write-offs, safety and presentation stock, future stock balance, goods in transit, pack size multiplicity, and shelf life.
This makes it possible to determine the quantity of goods required to cover demand until the next delivery, taking into account the actual inventory situation.
Main Formula
Order = max(round(Forecast D1D2 + Write-offs D1D2 + Safety Stock D1D2 + Presentation Stock − Stock D1), Shelf-Life Constraint)
Parameter | Meaning |
|---|---|
Forecast D1D2 | Sales forecast between the first delivery D1 and the next delivery D2 |
Write-offs D1D2 | Forecast of expired-product write-offs during the D1D2 period |
Safety Stock D1D2 | Recommended weekly safety stock × |
Presentation Stock | Minimum required inventory stock |
Round | Rounding of the order according to pack size multiplicity |
Shelf-Life Constraint | The quantity of goods determined taking shelf life into account; for packs, the minimum % of goods that must be sold before the end of the shelf life may be taken into account |
Stock D1 | Forecasted stock balance at the time of the first delivery |
How Delivery Time Is Taken into Account
For the D1D2 period:
if delivery takes place in the morning, day D2 is not taken into account;
if delivery takes place in the evening, day D1 is not taken into account.
This rule applies to the sales forecast, write-offs, and safety stock calculation.
Stock D1 Calculation
The stock balance at the time of the first delivery is determined using the formula:Stock D1 = max(0, Stock O1 − Forecast O1D1 − Write-offs O1D1 + Goods in Transit O1D1)
where:
Stock O1 — stock at the time of the first order;
Forecast O1D1 — sales forecast between O1 and D1;
Write-offs O1D1 — forecast of write-offs between O1 and D1;
Goods in Transit O1D1 — goods that will be delivered by D1.
If delivery takes place in the morning, day D1 is not included in the O1D1 forecast and write-offs. Otherwise, day D1 is taken into account.
Calculation Example
O1 — first order: 28.07.2017
O2 — second order: 01.08.2017
D1 — first delivery: 30.07.2017
D2 — second delivery: 03.08.2017
Assume:
Presentation Stock = 1
Multiplicity = 1
Safety Stock = 2
Delivery takes place in the morning.
We calculate the stock balance:Stock D1 = max(0, 5 − (2 + 1)) = 2
Forecast between D1 and D2:Forecast D1D2 = 3 + 3 + 1 + 2 = 9
Order:Order = round(9 + 1.5 + 1 − 2)Order = round(9.5) = 10
Result: 10 units.
Warehouse Orders: Cross-Dock and Picking
Cross-Dock
The warehouse order is formed as the sum of the orders of all stores, followed by rounding according to the multiplicity.
If the calculated quantity is less than 70% of the multiplicity, rounding is performed downward; if it is more, rounding is performed upward.
Picking
With Picking, the main order formula is used, but the calculation is performed over a 2–5 week horizon, taking future sales forecasts into account.
The future warehouse order equals the sum of future store orders, while already created orders are taken into account as goods in transit.
Ordering Ingredients and Subproducts
For subproducts, the system simultaneously takes into account the production requirement of the Master Product and the subproduct’s own demand.
Main logic:Subproduct Order = Check_Shelf_Life(Round(production requirement + subproduct’s own requirement − available stock))
The calculation takes into account:
Forecast, Safety Stock, Presentation Stock, and Stock D1 of the Master Product;
the quantity of the subproduct required to produce one unit of the Master Product;
the subproduct’s own Forecast, Safety Stock, Presentation Stock, and Stock D1;
shelf-life constraints.
If the subproduct is simultaneously used in production and sold separately, the system first reserves the stock required for its own sales.
The expression:Stock D1 of the subproduct − Forecast D1D2 − Safety Stock D1D2 − Presentation Stock
determines the part of the stock that can be used for production.
If the result is less than 0, it is automatically set to 0.
Result
MySales creates orders based not only on the sales forecast, but also on the future stock balance, write-offs, Safety Stock, Presentation Stock, goods in transit, multiplicity, shelf life, and supply scheme.
As a result, the system helps to determine the requirement until the next delivery more accurately, take already planned incoming deliveries into account, control inventory, and automate ordering both for regular products and for the warehouse and in-house production.
MySales determines not simply how much product will be sold, but how much needs to be ordered, taking into account future demand, available stock, and actual supply conditions.