Warehouse Allocation Calculator

Allocate inbound inventory with better cost control. Model warehouse capacity, service scores, and projected stock. Create fulfillment plans using demand-based scoring and capacity safeguards.

Calculator Inputs

This page uses a single-column section flow, while input groups switch to three columns on large screens, two on smaller screens, and one on mobile.

Units available to place in this cycle.
Expected ecommerce demand across all warehouses.
Used to convert monthly demand into daily demand.
Average replenishment lead time.
Extra cover for demand or supply risk.
Coverage needed until the next inbound cycle.
Leaves headroom instead of filling every bin location.
Changes score weighting across cost, service, demand, and room.

Warehouse Profiles

Warehouse 1
Warehouse 2
Warehouse 3
Reset

Example Data Table

Use this sample to test the calculator and verify the result flow.

Planning Item Example Value
Incoming Units4,200
Monthly Demand9,000
Days in Month30
Lead Time Days12
Safety Stock Days8
Reorder Cycle Days15
Capacity Buffer %10
Allocation ObjectiveBalanced
Warehouse Usable Capacity Current Stock Reserved Stock Demand Share % Storage Handling Shipping Service Score Priority
East Hub 4,000 900 200 40 0.85 0.55 1.45 9 5
Central Hub 5,200 1,100 250 35 0.75 0.60 1.35 8 4
West Hub 3,600 600 150 25 0.90 0.50 1.70 7 3

Formula Used

1) Daily demand

Daily Demand = Monthly Demand ÷ Days in Month

2) Target network stock

Target Network Stock = Daily Demand × (Lead Time + Safety Stock Days + Reorder Cycle Days)

3) Buffered capacity

Buffered Capacity = Usable Capacity × (1 − Capacity Buffer %)

4) Free capacity

Free Capacity = Buffered Capacity − Current Stock − Reserved Stock

5) Landed variable cost

Landed Cost / Unit = Storage + Handling + Shipping

6) Composite warehouse score

Score = weighted mix of demand factor, service, capacity, inverse cost, and priority. The exact weights change with the selected objective.

7) Allocation logic

Incoming units are distributed using each warehouse score, but never above free capacity. Any excess beyond buffered free capacity becomes unallocated overflow.

How to Use This Calculator

Step 1

Enter the incoming inventory quantity for the current replenishment cycle.

Step 2

Add network demand, planning days, lead time, safety days, and reorder cycle days.

Step 3

Set a capacity buffer so the model preserves storage headroom for peaks and slotting changes.

Step 4

Complete all warehouse rows with capacity, stock, demand share, cost, service score, and priority weight.

Step 5

Choose an objective. Balanced is general planning, Lowest Cost reduces expense, Fastest Service favors service, and Capacity Protection preserves room.

Step 6

Click Calculate Allocation. Review the summary, graph, detailed table, score table, and export the results to CSV or PDF.

FAQs

1. What does this calculator optimize?

It balances incoming units across warehouses using demand share, service quality, free capacity, unit cost, and business priority. The selected objective changes the weighting mix.

2. Why is there a capacity buffer?

The buffer leaves operational headroom for slotting changes, cycle count issues, returns, and inbound volatility. It prevents the recommendation from filling every usable location.

3. What happens if demand shares do not total 100%?

The calculator normalizes them automatically. That keeps relative demand importance intact while ensuring the scoring and target stock calculations still work correctly.

4. What are reserved units?

Reserved units are stock already committed to orders, channels, or internal holds. They consume capacity, but the model does not treat them as new incoming inventory to allocate.

5. Why can overflow remain unallocated?

If incoming units exceed buffered free capacity, the excess cannot be placed safely. The tool flags those units so you can plan overflow storage, transfers, or another receipt window.

6. When should I use Lowest Cost mode?

Use it when freight, handling, and storage expense matter more than speed. This mode gives a stronger advantage to warehouses with lower unit economics.

7. When should I use Fastest Service mode?

Use it when customer delivery experience matters most. Warehouses with higher service scores receive more weight, even if their unit cost is not the cheapest.

8. Can I use this for transfer planning too?

Yes. Treat transfer stock as incoming units and update current or reserved positions before calculation. The output becomes a practical guide for where the stock should land.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.