Quick Summary: Regions consolidate data from linked locations into a single virtual view strictly for planning and reporting purposes. This aggregation reflects group performance but cannot accept physical deliveries from suppliers.
Why It Matters
Viewing performance across several branches at once helps planners see the true demand picture.
When sales at individual branches fluctuate, forecasts can swing wildly. By aggregating their sales history into a single region, planners smooth out volatility, reveal seasonality, and improve forecast reliability.
This broader view makes it easier to plan promotions, manage risk centrally, and discuss total stock holding at a business-unit level.
Example Scenario
Four branches, each with its own sales, stock, and recommended order quantities (ROQ), are linked into one region.
Branch | Excess / Shortage (Units) |
1 | +1000 Excess |
2 | –200 Stock-out |
3 | –200 Stock-out |
4 | –200 Stock-out |
At first glance, three branches need stock. But at region level, the total stock across the chain is +400 units, so the system does not raise a new order.
Notice: The region assumes excess at one branch can cover shortages at another.
If transfers between branches are slow or costly, this assumption fails—and some branches will stay stocked-out even though the region looks balanced.
How To: Create, Configure & Maintain Regions
⚠️ Watchouts
Not a Physical Location: Never list a region as a supplier delivery point. It is a planning record only.
Check Transfer Feasibility: Only use regional planning when stock can move quickly and cost-effectively between branches.
💡 Tips
Smooth Erratic History: Use a region when individual branch sales are erratic; the combined history creates a more stable forecast baseline.
Validate Assumptions: Regularly compare regional totals with actual branch availability to ensure redistribution assumptions hold true.
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