Troll_Whisperer said:
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.
|
Dude! no, that just wrong. Your assuming that since in scenario A there is already 1000 units available they wont be requesting for additional deliverys. The thing is that each of the 1000 stores are trying to maitian an inventroy of 2 units. 1 to meet their daily deman and 1 just incase. so if each store sells 1 unit, they are left with 1 unit, which is 1 less than their comfort zone of 2 units. hence, they will order 1 unit each to bring back the inventory level back to two. then scenario A will again have 2000 units
In scenario B, they just dont order or have 900 units shipped to make it a round 1000. remember, they are maintaining a 10% buffer stock. So if they just get 900 units, their total inventory on hand will just be 1000. it is below the 1100 units that they maintain, so they will not just order 900 but 1000 to bring back their stocks to 1100 units.
Thats how it works.
Now lets also project it for 100 days like you did
Scenario A - will have sold 100,000 units but they will always maintain a buffer of 1000 units = 101,000 untis
Scenario B - will have sold 100,000 units buty they will always maintain a buffer of 100 untis = 100,100 units
See. thats how it works.
