What is warehouse size scarcity?

Warehouse size scarcity (%) is the percentage of missing sizes in the central warehouse. The higher this value the lower the possibility of replenishing the stores.

In more detail, for a given product with, for instance, 5 sizes (XS, S, M, L, XL), the number of sizes over the total (5 in this case) that warehouse stock is not able to cover all sizes missing in the stores of the category selected for the scenario.

Let's explain it through an example:

• Product "A" having 5 sizes (XS, S, M, L, XL)
• The scenario store category is composed of 20 stores
• All stores have at least one unit of each size available except for size "S"
• For size "S" there are 7 stores with stock out (no stock available for size "S")
• Therefore, we have WH size scarcity of 20% (1 size over 5) if available units of product "A" size "S" in the WH are less than 7  

It is one of the product selection criteria as store transfers are typically run at the end of a product life cycle, when warehouse stock is in fact scarce (if not null) and it makes sense to move units from one store to the other in order to maximize the sales probability within the network.