Debunking a VGC myth: PS3 needs more stock because it ships to more countries

[Troll_Whisperer]

miz1q2w3e said:

Troll_Whisperer said:

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.

Actually he has a point. None of the smaller shops will end up with 0 because they each have 2, when they sell a unit they'll end up with 1

And your comment about numbers being too small, in places that are not NA/EUR/JAP (aka M.E., AFR, ASIA) there are tons of shops with only one-two consoles in stock, believe me I've seen it a lot...

So in order for shops like that to be prepared for any sudden situations, they need to have something like 200-300% buffers above their weekly average (aka they need to 2-3 consoles extra in stock)

But for a store with a large number of console sales, something like a 10% extra buffer is enough (in this case there's no rounding numbers)

If someone comes to a shop with 2 console and they suddenly ask for 2 consoles, the stock will be 0, right?

Again, some shops will be above average and some below, but the average will remain the same. The stores get the consoles from warehouses, Sony ships to these warehouses, not the individual shops. In any case the average per shop will be the same.

Some shops will ask for the 1 year shipment and the stock will spike, but at the same time some shops will not ask for any units for months because they already asked for their 1-year shipment 11 months ago, so in their case stock will be below average (0 units needed) and will bring the average on par.

It's a matter of statistics.