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Decision Logic

Goal

Recommend stock transfers from overstocked stores to understocked stores while:

  • maximizing sales opportunity
  • respecting store grading priorities
  • maintaining fairness across receiving stores

Inputs

  • Stock on hand (SOH) by store and SKU
  • Recent sales (e.g., last week / last N weeks)
  • Store grade (A/B/C)
  • Overrides (manual rules / exclusions)

Demand Score (per store, per SKU)

Demand is estimated using:

  • Recent sales velocity (units/week)
  • Stock coverage (SOH ÷ velocity)
  • Store grade weighting

Supply Eligibility (donor stores)

A store can donate stock if:

  • SOH exceeds min threshold
  • coverage exceeds max threshold
  • donor store is not protected by overrides
  • SKU is transferable (not blocked)
  • Donor/Sender proximity determines who the best donor is

Transfer Recommendation Rules

For each SKU:

  1. Identify donor stores with excess stock
  2. Identify receiver stores with demand
  3. Allocate quantities using fairness constraints (see fairness.md)
  4. Output transfer plan

Overrides

Overrides always win. Examples:

  • lock store from donating
  • lock store from receiving
  • cap transfer per store
  • protect min display qty