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You are hereEqual Run-Out/Fair Share Quantity Logic

Equal Run-Out/Fair Share Quantity Logic

By Anonymous - Posted on 21 May 2012

Equal Run-Out
Regardless of how carefully the planning process is carried out, sometimes there is not enough product to be distributed. When this occurs a technique called “fair share” or “equal run-out allocation” may be employed. This method simply attempts to allocate material or parts fairly to each location.

This is a method of allocating scarce products/inventory with the purpose of keeping as many customers happy as possible.

Fair-share Quantity Logic
In inventory management, the process of equitably allocating available stock among field distribution centers. Fair-share quantity logic is normally used when stock available from a central inventory location is less than the cumulative requirements of the field stocking locations. The use of fair-share quantity logic involves procedures that ‘push’ stock out to the field, instead of allowing the field to ‘pull’ in what is needed. The objective is to maximize customer service from the limited available inventory.


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