The Redistribution Strategy Least Cost is used in Store Stock Redistribution to calculate the optimal trips between store and warehouse locations to redistribute items. This strategy will select location combinations in order to minimize the redistribution cost.
Available Redist. Strategies are:
- Least No. of Trips
- Least Cost
- Shortest Distance (Direct)
- Shortest Distance (Route)
- Shortest Duration (Route)
Calculation example
Item 10000 has Redistributable Stock in three locations and demand in two locations:
The Redist. Matrix has the following setup:
Result is as below:
Referring to the example above, the Redist. Strategy Least Cost will always look for the supply location with the lowest Redist. Cost defined in the Redist. Matrix.
Note: A supply location will not be considered in the calculation, if the value of Redist. Cost in the Redist. Matrix is 0. For more information on how to maintain the Redist. Cost see How to Maintain Redist. Transfer Cost.
Unlike Redist. Strategy Least No. of Trips, the stores or warehouses in Redist. Stock will not be considered unless there are supply locations that have the same Redist. Cost defined in the Redist. Matrix. In that case, the system will calculate the optimal trips by selecting the supply location which holds the highest Redist. Stock.
See also
Redistribution Calculation Types