metrics | Full form | Formula | Increased indicates | Decreased indicates |
QP | Profit per Quantity | Profit/Sells | Profitable product | Less Profitable Product |
SO | Orders Per Stock | Orders/stock | Low stock compared to demand | High stock compared to Demand |
Can we afford to close one warehouse?
- General summary
Yes , you can , i have done exploratory data analysis on given dataset and here are my main finding:
-
We have 1 non moving asset ( Toyota supra , 7.6k units , 0 sold )
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We also have lot of slow moving assets
Which warehouse to close?
Based on my analysis we can close “a” and “d” warehouse. Given that B and C has most storage closing them would be harmful in heavy demand. Also dataset has no information regarding warehouse location other than their name east , west, noth , south. I tried to locate warehouse based on customer orders and delivery time but given that dataset does not contain information regarding mode of transportation, i was not able to locate them. So here is few information regarding warehouses which will help you in making decision.
- Warehouse Near France & Germany should not be close, if warehouse is in USA east then it is best location given that we can delivery product fast to high demand country
- Warehouse near Ocean ( which i suspect is d) can be closed if other warehouse is also located near Ocean, due to inventory of D is filled with planes , ships & trains
- Delivery time to Japan will always be 4-7 days so trying to reduce that amount is unnecessary as it will impact other parts of bussiness
Here is list of ProductLine of each warehouse
Warehouse | ProductLine | Count |
a | motorcycles | 13 |
Planes | 12 | |
b | Classic Cars | 38 |
c | Vintage Cars | 24 |
d | Trucks and buses | 11 |
Ships | 9 | |
Trains | 3 |
USE mnt2;
SELECT p.productLine, COUNT(p.productCode) AS counts
FROM products AS p
WHERE p.warehouseCode = "d"
GROUP BY p.productLine
Products in Each Warehouse: sheet
How to close warehouse?
I have adjusted Products in Stock , increased understocked products and decreased overstocked products setting SO near 0.8 for understock and 0.4 for overstock products. Here are steps