Example Data Table
| Channel | Forecast Demand | Unit Margin | Priority | Current Stock | Minimum Display | Supply Risk | Capacity |
|---|---|---|---|---|---|---|---|
| Website | 180.00 | $14.50 | 5 | 45.00 | 20.00 | 2 | 240.00 |
| Amazon | 210.00 | $11.20 | 5 | 60.00 | 25.00 | 3 | 280.00 |
| eBay | 110.00 | $9.80 | 3 | 30.00 | 15.00 | 2 | 150.00 |
| Social Shop | 95.00 | $13.40 | 4 | 22.00 | 12.00 | 4 | 135.00 |
| Wholesale | 260.00 | $8.10 | 4 | 80.00 | 30.00 | 5 | 340.00 |
You can replace these example numbers with your own marketplace, channel, or fulfillment network assumptions.
Formula Used
This calculator uses a weighted allocation model designed for fast channel planning rather than strict linear programming.
- Target Stock = (Forecast Demand × Service Target %) + Minimum Display Stock
- Coverage Ratio = Current Stock ÷ Target Stock
- Priority Score = (Demand Weight × DemandN) + (Margin Weight × MarginN) + (Priority Weight × PriorityN) + (Risk Weight × RiskN) − (Stock Penalty Weight × Coverage Ratio)
- Max Allocatable = minimum(Target Stock − Current Stock, Capacity − Current Stock)
- Weighted Need = Remaining Need × max(Priority Score, 0.05)
- Allocation Share = Remaining Units × Weighted Need ÷ Sum of All Weighted Needs
How to Use This Calculator
- Enter total available stock and choose a safety buffer percentage.
- Set the service target that matches your fulfillment promise.
- Adjust weighting controls to match your business strategy.
- Enter each channel’s demand, margin, stock, risk, and capacity.
- Click Optimize Stock Allocation to generate recommendations.
- Review the allocation table, fill rates, and projected margin results.
- Use the Plotly graph to compare demand, current stock, and projected stock visually.
- Download the result table as CSV or save the result block as PDF.
FAQs
1. What does this optimizer actually recommend?
It recommends how many units to place into each selling channel after comparing demand, margin, business priority, current stock coverage, risk, and storage capacity.
2. Why is there a safety buffer input?
The safety buffer holds back part of the available inventory. This protects against forecast error, delayed replenishment, returns, damaged stock, or sudden demand spikes.
3. How does the priority score work?
The score increases when a channel has stronger demand, better margin, higher business priority, or greater supply risk. It decreases when a channel already has stronger stock coverage.
4. Can I model marketplaces and owned channels together?
Yes. You can compare direct stores, marketplaces, social commerce, wholesale, and retail channels in one run, as long as the numbers use the same unit basis.
5. What does fill rate mean here?
Fill rate measures projected stock after allocation relative to target stock. Values near or above 100% mean the modeled channel is adequately covered.
6. Why can some units remain unallocated?
Unused units appear when every channel reaches its capacity or practical stock need. This means the optimizer avoided overfilling channels beyond reasonable limits.
7. Is this a replacement for ERP planning software?
No. It is a planning aid for fast scenario analysis. It helps teams compare allocation options before pushing changes into deeper forecasting or ERP workflows.
8. When should I change the weighting values?
Change them when your business goals change. Increase margin weight for profitability, demand weight for volume, risk weight for resilience, or stock penalty for lean inventory control.