CodeRealm Corporation can accurately provide your valuable information on demand in real-time via the Internet. The next step after tuning is timing the servicing of the vending machine close to, but before the machine is empty. Selecting the right time to service each vending machine without real-time sales information and current sales history involves arts akin to divination. Unless you have very good divination skills, you need that valuable information on demand in real-time automatically that CodeRealm Corporation can provide. With that valuable information on demand in real-time, it is possible to know precisely when the “right time” is to refill each vending machine.

An empty vending machine with Old World Timing is an enigma. In a perfect world, perfect timing would have all products run out at the same time exactly when the perfect schedule had someone arrive to restock, resulting in 100% sales and 0% lost-sales. In the real world a 100% perfect timing may not be possible, but much better than 50% is certainly necessary. A completely empty machine at restock time begs the questions:

• How long has it been out? How many sales did I loose?
• Do I need higher capacity machines, more machines, or simply an adjustment to the restock schedule?
• Is doing nothing the best option?”
• Did the machine become empty an hour ago, a day ago, or a week ago?

There are only two ways to determine the answers to those questions. One-way is increase the product capacity at that location, and the second way is to have someone physically check the machine more frequently. Increasing the product capacity requires installing another vending machine, or replacing the existing vending machine with one having larger capacity. Adding or exchanging a vending machine is an expensive proposition, and usually would not be done unless it is already known to be necessary. Checking the vending machine more often is less expensive but does add significant cost to a business operating with very slim margins. You either have the regular vending machine service person check the vending machine, which takes time away from restocking other vending machines, or pay someone else to check. After the checking expense you may find out that it did run out just before the vending machine service person arrived, and so nothing need be done now. What about next time?

CodeRealm World Timing uses the valuable information on demand in real-time to calculate sales rates for every vending machine. With accurate sales rate information it is possible to predict when a particular machine will be empty, compare that time to the actual time the vending machine is empty, adjust the prediction formula accordingly, and estimate the lost-sales value between empty and refill. With this information CodeRealm can provide reports indicating the relative merits of adding product capacity, or adjusting the vending machine service schedule.

Timing was fixed at seven days for ease of discussion in the Tuning Section of this vending machine servicing demonstration. Major tuning changes were required initially to adjust the product selection quantities for the new location. After the initial tuning, subsequent change requirements were relatively gradual. What if the market changes were faster and more radical? In this section related to product restock timing we will assume the tuning requirements to be non-changing for ease of discussion and focus on the effects of changes in timing upon revenue and costs.

The tuning averages for the thirteen-week example in the tuning section were 77% for Old World Tuning and 93% for CodeRealm World Tuning. In this timing section we will assume the tuning to be fixed at 80% for Old World Tuning and 95% for CodeRealm World Tuning. The assumed percents are a little higher since we will also assume we will be observing machines in locations that have already been in operation for at least thirteen weeks.

Old World Timing Detail

CodeRealm World Timing

Next: Old World Timing Detail