Store Level Calculation Rules for Cigarettes & Tobacco

Description: Below are the rules the Store Level System uses when calculating how many cartons to ship to the store. These rules are geared toward the concept that 80% of a store's volume comes from the store's top 20 selling products Because of this concept the Store Level system handles products that are in the top 20 category differently than those that are not in the top 20. 


When the ‘On hand’ carton quantity is > zero cartons

Order point carton quantity – # of cartons ‘On hand’ = # of cartons shipped to the store 



When the ‘On hand’ carton quantity = zero cartons 

Top 20 Products:

If a zero inventory is sent from store (Normal Zero)
                    
                    Maximum order is sent, plus bump by 10% 

If there was nothing scanned for this product we default to a zero (Red Zero)
                    
                    Maximum order is sent, plus bump by 10% 



Non Top 20 Products: 

If a zero inventory is sent from store (Normal Zero)
                    
                    Maximum order is sent 

If a zero inventory is sent two weeks in a row (Normal Zero)
                    
                    Maximum order is sent, plus bump by 10% 

If there was nothing scanned for this product we default to a zero (Red Zero)
                  
                    
No inventory is sent!!!



Important Notes:

-The terms Normal Zero and Red Zero refer to the type of the zero that comes across on the K3S-Replenish® Store Level screen. A Normal zero is when the store manager scans a zero on hand quantity. A Red Zero is when the store manager does not scan an on hand quantity.

-We will always round the 'bump' up to at least 1 carton.
Example: if a top 20 product has a build to of 4 cartons and the manager scans zero no hand, we will send them 5 cartons (4 cartons for the build to plus 1 carton for the bump). Even though 10% of 4 is only 0.4, this will be rounded up to 1 carton.



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