Troll_Whisperer on 26 October 2011
| daveJ said: Product A. sells on average 10 units a week 2 shops each with eg 8 units each = 16 units needed to handle expected demand shop 1, shop 2 Product B. sells on average 10 units a week 10 shops each with eg 2 units each = 20 units needed to handle expected demand shop 1 shop 2 shop 3 shop 4 shop 5 shop 6 shop 7 shop 8 shop 9 shop 10 ie The more shops you have the more stock you will need to have in stock |
That doesn't make sense. You just used too low a number, so you needed to round.
The 10 shops would need 1.6 units each, but of course that doesn't make sense. If you use a larger number it does.
Even so, in you example, the moment a shop sells a unit, it will have 1 and not 2. Some will have 0. When this happens over time and if demand stays stable the average for all the stores around 1.6 units per store.
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