Store Transfer's Optimization
In the Optimization phase, Nextail algorithm aims to optimize stock distribution across your network by reallocating inventory to the stores where the sales potential for each product is higher).
The goal is to reduce stockouts while balancing overstock situations, ensuring that products are positioned where they are most likely to sell.
The model behind this module evaluates multiple factors to determine the feasibility and profitability of each movement. Key considerations include:
- Trips Configuration: Trips will be calculated only on allowed movements across the network (e.g. Forbid transfers between stores from different countries).
- Efficiency: the system will only propose transfers that overcome the minimum Sales Increase (ESI) set by the user as well as the Efficiency Threshold.
- Visual Merchandising Rules: Transfers must adhere to Visual Rules and Block constraints set by the user.