How do we calculate the sales & inventory forecasting
Let's check how we calculate all numbers in the inventory forecasting report based on the sales history to ensure we are on the same page as we get started.
Average Units Sold per day
We calculate this metric based on the days of product published on Shopify and the range of selected historical period.
Adjusted trend
You can increase or decrease the forecast results by edit the adjusted trend parametter in the report. It's 1 by default.
If you want to add 30% sales to forecast result, set the Adjusted trend as 1.3.
Adjusted Units Sold per day: the units sold per day after adjusted.
Quantity On-hand: Current stock levels of each product.
Incoming Inventory: Ordered stock that is yet to be received.
Days of Inventory Remaining: Estimated time until the current stock runs out.
Forcast Time: The duration, measured in days, over which inventory requirements are projected and forecasted.
Forcast Sales Quantity: The projected number of unit sold.
Forecast Sales Amount: The projected of gross sales.
Forcast Inventory Quantity Need: The projected number of units required to sustain adequate stock levels.
Forcast Inventory Value Need : The projected value of units required to sustain adequate stock levels.
Terms & Formula
Average Units Sold per day
We calculate this metric based on the days of product published on Shopify and the range of selected historical period.
[Total Units Sold in the period] / [Days of product published]Adjusted trend
You can increase or decrease the forecast results by edit the adjusted trend parametter in the report. It's 1 by default.
If you want to add 30% sales to forecast result, set the Adjusted trend as 1.3.
Adjusted Units Sold per day: the units sold per day after adjusted.
[Average Units Sold per day] x [Adjusted Trend]Quantity On-hand: Current stock levels of each product.
Incoming Inventory: Ordered stock that is yet to be received.
Days of Inventory Remaining: Estimated time until the current stock runs out.
( [Quantity On-hand] + [Incoming Inventory] ) / [Adjusted Units Sold per Day]Forcast Time: The duration, measured in days, over which inventory requirements are projected and forecasted.
Forcast Sales Quantity: The projected number of unit sold.
[Adjusted Units Sold per Day] x [Forecast Time]Forecast Sales Amount: The projected of gross sales.
[Forcast Sales Quantity] x [Product Selling Price]Forcast Inventory Quantity Need: The projected number of units required to sustain adequate stock levels.
[Forcast Sales Quantity] - [Quantity On-hand] - [Incoming Inventory]Forcast Inventory Value Need : The projected value of units required to sustain adequate stock levels.
[Forcast Inventory Quantity Need] x [Product Unit Cost]Updated on: 06/08/2024
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