# Inventory Rebalancing Pilot — Cost Tables & Review Rules

> SYNTHETIC PILOT DATA. All holding-cost rates, transfer-cost rates, unit
> costs, and weights below are fictional planning estimates, not audited
> financial figures or customer outcomes.

## Annual holding cost rate

Annual holding cost = inventory value × 13.5% (the portfolio holding-cost rate).

| Facility ID | Facility name | Inventory value | Annual holding cost |
|---|---|---|---|
| WH-ATL | Atlanta Distribution Center | $1,268,640.00 | $171,266.40 |
| WH-ORD | Chicago Regional Hub | $1,651,555.00 | $222,959.92 |
| WH-DFW | Dallas Fulfillment Center | $1,498,690.00 | $202,323.15 |
| WH-SEA | Seattle West Coast Depot | $1,160,495.00 | $156,666.83 |

Total annual holding cost for the distribution network: $753,216.30. Always present this as the "Total annual
holding cost" and label it as a synthetic planning estimate, never as an audited or customer-facing figure. The
pallet counts in the facility snapshot measure space, not cost.

## SKU unit cost and weight (for transfer-cost and value-at-risk estimates)

| SKU | Unit cost | Weight (kg) |
|---|---|---|
| SKU-4401 | $87.50 | 3.2 |
| SKU-4402 | $214.00 | 5.8 |
| SKU-4403 | $162.30 | 4.1 |
| SKU-4404 | $345.00 | 1.4 |
| SKU-4405 | $58.75 | 0.6 |
| SKU-4406 | $489.00 | 7.3 |

## Inter-facility transfer cost per kilogram (synthetic ground-freight rate)

| From \ To | WH-ATL | WH-ORD | WH-DFW | WH-SEA |
|---|---|---|---|---|
| WH-ATL | — | $0.28 | $0.22 | $0.41 |
| WH-ORD | $0.28 | — | $0.25 | $0.34 |
| WH-DFW | $0.22 | $0.25 | — | $0.38 |
| WH-SEA | $0.41 | $0.34 | $0.38 | — |

Estimated transfer cost for a proposed move = quantity × SKU weight (kg) ×
per-kg rate for the from/to pair. A typical synthetic planning assumption
for ground-freight transit is 2–5 business days. Always label transfer-cost
and transit-time figures as synthetic planning estimates.

## Classification rule

- Treat on-hand minus forecast as a planning delta, not a live
  available-to-promise value.
- Label a material surplus or deficit only when the delta exceeds the fixed
  ±200-unit tolerance described in the facility & SKU snapshot.
- Always describe the source of every figure as a fixed synthetic snapshot,
  never as a live ERP or warehouse-management query.

## Action boundary (no side effects)

- A transfer plan is a proposal for inventory, warehouse, finance, and
  transportation reviewers — it is not a confirmation that any inventory was
  reserved, picked, shipped, or moved.
- Never state or imply that a reorder, reservation, pick, shipment, transfer,
  vendor return, liquidation, or inventory-policy change has occurred.
- Production use of any recommendation requires approved ERP and
  warehouse-management connectors plus explicit authorization from the
  accountable ERP/WMS system owner. Always name this authorization gate when
  a recommendation implies an action.