In retail chains, situations often arise where a new batch of products arrives at the central warehouse, but its quantity is objectively smaller than the total demand of all branches or retail stores. This workflow — distributing products while simultaneously identifying shortages and creating replenishment orders — is critical for uninterrupted sales.
"How can I automatically calculate how many products each store needs based on sales and current stock?",
"What should I do if the central warehouse does not have enough products for all locations, and how can I distribute the available stock fairly and proportionally?",
"How can I immediately create supplier orders for the missing quantity during distribution?", and
"How can I determine which supplier is best suited for replenishing a particular product?".
Torgsoft provides built-in tools that address all these needs within a single window.
Below, we will take a detailed look at how the shortage distribution algorithm works and how the system helps automatically generate orders for missing quantities.
1. Automatic Demand Calculation and Proportional Distribution
The basis for proper distribution is the automatic calculation of the product quantity required by each branch. In the «Product Distribution» mode, the program uses a special formula that users can configure flexibly. By default, it looks like this: (<Sales Quantity> + <Minimum Stock> - <Quantity in Stock>) * n (where n is the stock coefficient for a future period).
When you select the «Perform Calculation» action, the program automatically fills in the «Incoming Quantity» column. This is the quantity that will physically be sent to the location.
What happens if there is not enough stock?
If the central warehouse has fewer products than the total demand of all branches, the system automatically distributes the available stock proportionally to their needs.
For example: Store No. 1 needs 7 units, while Store No. 2 needs 4 units, making the total demand 11 units. However, the central warehouse has only 3 units. Since Store No. 1 has greater demand, it receives priority and will receive 2 units, while Store No. 2 will receive 1 unit.
2. Shortage Visualization: How the System Displays Missing Quantities
To ensure that the owner or warehouse employee can clearly see the difference between the quantity being sent and the quantity actually required, Torgsoft includes the «Calculated Quantity» column.
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This column displays the ideal demand of the accounting center as calculated using the formula.
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If the allocated «Incoming Quantity» is lower than the «Calculated Quantity», the cell containing the calculated demand is highlighted with a light orange background. This provides a clear visual indication that the store's demand has not been fully met.
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Users can manually adjust the value in the «Calculated Quantity» column if they are aware of additional exceptions or specific requirements of a particular location.
If the total value in the «Calculated Quantity» column for all receiving branches exceeds the sender's actual stock, the product automatically becomes available for replenishment ordering.
3. «Order Based on Distribution» Mode: Creating a Supplier Order
To order the missing quantity, you do not need to leave the distribution mode or search for these products in other menus. Simply select the «Order Based on Distribution» action.
A new form will open, displaying a list of products with shortages broken down by the most recent delivery batch from each supplier. Here, you can determine which supplier to order from and at what price. The visibility of purchase prices is controlled by the user's access permissions.
Quick Ordering Algorithms
In the «Quantity (Order)» column, you can manually specify the required quantity, but the system also provides powerful automation tools:
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By the date of the latest delivery. The program automatically selects the supplier that provided the most recent batch of the product. This action is performed by default when the window is opened.
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By the specified supplier. If you have filtered the list by a particular supplier, the system will set the order quantity specifically for that supplier for all products they have supplied at any time.
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Set the supplier and order quantity. This action opens a dialog box where you can assign a supplier to multiple products at once, including products that were previously entered as «opening stock balances» and therefore have no history of actual purchases.
After reviewing the list, simply click the «Create Supplier Order» button. You can also add a text comment, which will be attached to the created document.
Important restrictions to keep in mind: the system includes built-in protection against incorrect orders. The following products will not appear in the «Order Based on Distribution» form:
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Products marked as prohibited from ordering in their product cards.
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Templates, automatic kits with serial numbers, seasonal storage boxes, and models.
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If a product is prohibited from being ordered from a particular supplier, it will be highlighted in light orange, and the quantity input field will be locked. The same applies to products received from system counterparties, such as through inventory reconciliation, without an actual supplier.
With this tool, product distribution changes from routine work into an analytical process: you not only distribute the stock available in the warehouse but also respond immediately to shortages by creating accurate and well-grounded supplier orders.
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