Multi-Location Inventory Imbalance Estimator
Split inventory across two locations and it rarely stays balanced — one sells through fast while the other sits on cash you can't use. This compares two locations' stock against their own sales pace and estimates how many units (and dollars) should move to even them out. For a true multi-location network, that's what Verve AI is built for.
What your result means
The calculator shows how many days each location's stock will last at its own sales pace, and how many units to move so both run out at about the same time. It also shows the value of that stock.
A big gap in days of supply means one location is close to running out while the other is sitting on stock it won't sell for weeks. That's lost sales on one side and idle cash on the other.
How the calculation works
Days of supply = Stock on hand ÷ Daily sales Fair share for A = Total stock × (A's daily sales ÷ Combined daily sales) Transfer = Fair share for A − A's stock on hand
- Stock on hand
- units at each location
- Daily sales
- units each location sells per day
- Transfer
- positive means move to A; negative means move to B
The fair share gives each location stock in proportion to how fast it sells, so after the transfer both have the same days of supply.
Worked example
Worked exampleExample numbers
These match the calculator's default inputs.
| Input | Location A | Location B |
|---|---|---|
| Daily sales | 20 units | 5 units |
| Stock on hand | 100 units | 200 units |
- Days of supply: A = 100 ÷ 20 = 5 days; B = 200 ÷ 5 = 40 days
- Total stock = 300 units; A's share of sales = 20 ÷ 25 = 80%
- Fair share for A = 300 × 80% = 240 units
- Transfer = 240 − 100 = 140 units from B to A, worth 140 × $10 = $1,400
After the move, both locations hold 12 days of supply (240 ÷ 20 and 60 ÷ 5).
How to keep locations balanced
- Set reorder points per location, not just for the business as a whole. The reorder point calculator works for each one, and the guide to inventory replenishment covers which method to use.
- Route new stock to where it sells. Splitting deliveries by sales share avoids the transfer in the first place.
- Check transfer cost against stockout cost. The stockout revenue loss estimator shows what running out at the busy location would cost.
- Review weekly in busy periods. Imbalances build fastest when sales are moving.
The guide to Shopify multi-location inventory explains how locations work in Shopify and how to spot imbalance in your reports.
Common mistakes
- Using sales from a period with stockouts. A location that ran out shows low sales because it had nothing to sell, not because demand was low. Leave out stockout days when working out daily sales.
- Moving everything the calculator suggests at once. If a delivery is already on its way to one location, account for it before transferring.
- Ignoring transfer cost and time. A transfer that takes as long as a new delivery from your supplier doesn't help. Compare both.
- Balancing slow movers. For products that barely sell anywhere, it's often better to consolidate stock in one location than to balance it.
- Treating online and in-store demand the same. If one location fulfills online orders as well as walk-in sales, use its total daily sales.
FAQ
When is a transfer better than a reorder?
When one location has more stock than it will sell before the next delivery while the other is close to running out. Moving stock you already own is usually cheaper and faster than buying more, as long as transfer shipping costs less than the margin you'd lose to a stockout.
Why does the calculator balance by days of supply, not by units?
Because locations sell at different speeds. Splitting stock evenly in units would leave the faster location running out first. Balancing days of supply means both locations last about the same time.
Can I use it for more than two locations?
The calculator compares two at a time. For more, compare each location's days of supply and move stock from the ones with the most days to the ones with the fewest, starting with the biggest gaps.