How do we forecast the inventory based on stock movement?
We predict inventory demand by analyzing stock movements, considering the number of units deducted due to various factors such as sales, inventory transfers, shrinkage, and staff adjustments. This allows us to estimate the additional inventory required to counterbalance stock reductions, ensuring that sufficient products are available in the store.
SKU: Stock Keeping Unit, a unique identifier for your product variants.
Beginning Quantity: The initial quantity of a product in the inventory at the commencement of a specified historical period.
Total Units Deducted: The cumulative quantity of units subtracted or decreased for a specific product variant over a historical period.
Total Units Added: The cumulative quantity of units received or added to inventory for a specific product variant over a historical period.
Ending Quantity: The concluding quantity of a specific product variant in the inventory at the end of a historical period.
Units Deducted per Day: The mean quantity of units deducted or sold daily for a specific product variant over a historical period.
Adjusted trend: you can increase or decrease the forecast results by edit the adjusted trend parameter in the report. It's 1 by default. If you want to add 30% to the forecast result, set the Adjusted trend as 1.3.
Adjusted Units Deducted per Day: the deduction quantity per day after adjusted.
Quantity On-hand: Current stock levels of each product.
Incoming Inventory: Ordered stock that is yet to be received learn more...
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 Inventory Quantity: The projected number of units required to sustain adequate stock levels for a given product
Terms and formula
SKU: Stock Keeping Unit, a unique identifier for your product variants.
Beginning Quantity: The initial quantity of a product in the inventory at the commencement of a specified historical period.
Total Units Deducted: The cumulative quantity of units subtracted or decreased for a specific product variant over a historical period.
Total Units Added: The cumulative quantity of units received or added to inventory for a specific product variant over a historical period.
Ending Quantity: The concluding quantity of a specific product variant in the inventory at the end of a historical period.
Units Deducted per Day: The mean quantity of units deducted or sold daily for a specific product variant over a historical period.
[Total Units Deducted] / [Historical Period (days)]Adjusted trend: you can increase or decrease the forecast results by edit the adjusted trend parameter in the report. It's 1 by default. If you want to add 30% to the forecast result, set the Adjusted trend as 1.3.
Adjusted Units Deducted per Day: the deduction quantity per day after adjusted.
[Units Deducted per Day] x [Adjusted Trend]Quantity On-hand: Current stock levels of each product.
Incoming Inventory: Ordered stock that is yet to be received learn more...
Days of Inventory Remaining: Estimated time until the current stock runs out.
( [Quantity On-hand] + [Incoming Inventory] ) / [Adjusted Units Deducted per Day]Forcast Time: The duration, measured in days, over which inventory requirements are projected and forecasted.
Forcast Inventory Quantity: The projected number of units required to sustain adequate stock levels for a given product
[Adjusted Units Deducted per Day] * [Forecast Time] - ( [Quantity On-hand] + [Incoming Inventory] )Updated on: 14/08/2024
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