▲ | zrobotics 4 days ago | |
It's still FILO, the shuffle is needed for multiple locations. The emergency store keeps (for example) 5x the stock of canned beans, and feeds an area with 4 regular stores. They have 5x more stock then they could regularly sell, so if stock wasn't transferred then the canned beans would expire before they were sold. They need to transfer their surplus inventory to the 4 regular stores they feed before that stock ages, since in regular use they won't sell them in time. Since I've had to deal with a similar issue professionally, maybe think of a retailer with 5 distribution warehouses and 50 stores. Normally you want to pick from the closest distribution warehouse to minimize transport costs. However, for food items that expire sometimes it might make sense to pick from the furthest warehouse if their stock is getting older, you need to optimize both for transport costs and the cost of having to throw food away. It's beyond a HN comment, and I'd have to review what isn't NDA, but the optimization math for such a scenario gets both really complicated and really interesting. Hope this clarifies why they would be moving stick though. | ||
▲ | estimator7292 3 days ago | parent [-] | |
This is a pretty common mechanism in several markets. I worked in the big paint store chain in the US and the local setup was a lot like this. Every store had as much stock as they can physically hold, and no two have the same capacity. It was a daily occurrence to shuttle stock to and from nearby locations, and very common for a small store to have a nearby large store order and hold stock for a job too big for the origin store to handle. We also had commercial stores spread out which were in essence local warehouses. Those stores spent a large part of their time handling stock transfers. They held specialty products small stores rarely need and couldn't justify the minimum order quantity. It's a lot more efficient and much faster than having product shipped across the country. |