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

[Troll_Whisperer]

miz1q2w3e said:

Troll_Whisperer said:

miz1q2w3e said:

lolololo @the bolded the way you post sometimes... XD

Anyways, yes the average will remain the same, but average doesn't matter when numbers become small scale, buffer stock will always be disproportionately high in comparison to units sold in this case

daveJ's example was more than enough imo, I can't explain it any simpler for you

A shop won't ask for 200 consoles if it sells 2 per month, it's financial suicide. I may ask for 10. But then, 10 more stores will have 2-3 and will not have asked for stock for months. They're not going to try and keep an amouth of stock that's good for a year constantly.

What you're saying is that all small stores keep a constant stock of several months in case there is a sudden spike in demand. Again, it doesn't work like that. If you sell 2 a month you're not gonna order more every time you have less than 100 consoles in stock.

And BTW, if you run out of consoles, you run out of consoles. It happens in many stores in the West. I don't know why you think that it's going to work different elsewhere, you need units for a certain amount of time.

I don't know why you have a problem with this, but it's very simple. The average demand of the whole market is going to be enough for the same amount of time as in other markets.

Also, sor some reason, you're assuming this doesn't happen in markets where X360 sells, which is simply not true, because there are a lot of remote towns in these two.

As you would say, I can't explain it any simpler for you.

Half of the stuff you just wrote is total BS - I never said any of that

If you have a hypothetical average consumption of 1 unit per day but keep two just in case you have a redundancy then your average is still 1 unit per day. Say their are 1000 shops like this. Average = 1000

Now say another bigger shop averages at 1000 units per day and has the usual 10% buffer. Average = 1000 as well

Senario A: 2000 buffered units
Senario B: 100 buffered units

IRL it's not quite this severe but my point still stands. A high percentage of stock to sales ratio in regions similar to senario A = more stock sitting on shelves

wow, didn't think I'd have to go as basic as that but PLEASE tell me you understand now

That doesn't account for units sold.

In Scenario A there are 2,000 units total stock before the day starts.

In Scenario B there are 1,100 units before the day starts.

Next day, Scenario A will have enough units for the day, having an average of 2,000 in two days.

However, Scenario B will need to order 900 units more, bringing the total to 2,000 in two days.

 

Even if you apply it longer term, its the same. Eventually the average stock will remain the same.

Scenario A decides to get enough stock for 100 days= 100,000 units

Scenario B does the same= 100,000 units.

 

They may have different amounts of stock for different times, but receiving and selling the units at the same rate means the average stock will be the same.

 

And again, that's assuming all stores are small in one market and all are big in the other, which is false.