Recommended Allocation Result
The best scenario still leaves some units on backorder.
| Warehouse | Allocated Units | Share % | Available Stock | Used | Operational Cost | Objective Cost | Handling Days | Effective Unit Cost |
|---|---|---|---|---|---|---|---|---|
| East FC | 90 | 50.00 | 90 | Yes | $159.50 | $96.50 | 1.00 | $0.95 |
| Central DC | 70 | 38.89 | 70 | Yes | $145.00 | $267.50 | 2.00 | $3.70 |
| West Hub | 0 | 0.00 | 110 | No | $0.00 | $0.00 | 3.00 | $5.00 |
| Backorder | 20 | 11.11 | 0 | Yes | $0.00 | $180.00 | Pending | $9.00 |
Allocation Graph
Calculator Inputs
Example Data Table
| Warehouse | Stock | Fixed Shipping | Per Unit Shipping | Pick Fee | Handling Days | Zone Score | Priority Score | Sample Allocated Units |
|---|---|---|---|---|---|---|---|---|
| East FC | 90 | $8.00 | $1.65 | $3.00 | 1.0 | 2 | 9 | 90 |
| Central DC | 70 | $6.00 | $1.95 | $2.50 | 2.0 | 5 | 7 | 0 |
| West Hub | 110 | $9.00 | $1.45 | $3.25 | 3.0 | 7 | 6 | 90 |
This example shows a 180-unit order split across two facilities when one location alone cannot fulfill the full demand efficiently.
Formula Used
The calculator converts each warehouse into an adjusted unit cost, then checks every warehouse combination up to your maximum allowed split count.
Effective Unit Cost
= Per Unit Shipping
+ (Handling Days × Late Penalty per Day)
+ (Zone Score × Zone Penalty per Point)
- (Priority Score × Priority Credit per Point)
Warehouse Operational Cost
= Fixed Shipping Cost
+ Pick and Pack Fee
+ (Allocated Units × Per Unit Shipping)
Adjusted Objective Cost
= Sum of Warehouse Objective Costs
+ (Split Count × Split Penalty)
+ (Backorder Units × Backorder Penalty per Unit)
Fill Rate
= Allocated Units ÷ Order Quantity × 100
Weighted Handling Days
= Sum of (Allocated Units × Handling Days) ÷ Total Allocated Units
The recommended allocation is the feasible scenario with the lowest adjusted objective cost. Ties are broken by fewer backorders, fewer warehouses, and faster average handling.
How to Use This Calculator
- Enter the order quantity and average product value.
- Set the maximum number of warehouses allowed for fulfillment.
- Adjust penalties for split shipments, handling delay, delivery distance, and backorders.
- Enter stock, shipping costs, handling days, zone score, and priority score for each warehouse.
- Submit the form to compare scenarios and view the recommended allocation.
- Use the export buttons to save the result table as CSV or PDF.
FAQs
1. What does split order allocation mean?
It means dividing one customer order across multiple warehouses. Stores do this when no single location can fulfill everything cheaply, quickly, or with enough stock.
2. Why does the calculator use penalties?
Penalties convert service risks into comparable values. They help reflect tradeoffs between speed, distance, extra package handling, and delayed fulfillment in one objective score.
3. What is the difference between operational cost and objective cost?
Operational cost covers direct fulfillment expenses like shipping and pick fees. Objective cost adds business rules such as delay, zone, split, and backorder penalties.
4. When should I allow backorders?
Allow backorders when preserving margin or reducing shipment complexity matters more than complete immediate fulfillment. Disable them when full shipment service is mandatory.
5. How should I choose zone and priority scores?
Use low zone scores for nearby facilities and high scores for distant ones. Use high priority scores for strategic locations that deserve stronger allocation preference.
6. Can this calculator reduce shipping waste?
Yes. By pricing split penalties and comparing warehouse combinations, it helps identify allocations that reduce extra parcels, unnecessary handling, and inefficient fulfillment choices.
7. Why might a slower warehouse still get units?
A slower site can still win units when it has cheaper shipping, strong inventory, or enough priority credit to offset delay and distance penalties.
8. Is the result an exact optimization model?
It is a practical scenario optimizer for up to three warehouses. It tests feasible combinations and ranks them using your rules and penalty settings.