Inventory Forecasting

In this article:

1. Introduction
2. Things to take note
3. Theories behind inventory forecasting

1. Introduction

Product inventory forecasting helps every business make better decisions in estimating the cost of revenue & sales accurately based on where they can predict in the short-term and long-term performance. Why do we need inventory forecast?

• To maintain appropriate stock levels
  
• To allocate resources efficiently for future growth
  
• To improve the sales process
  
• To identify competition coming out of the business OR new competition entering the market

2. Things to take note

• This feature is available in EasyStore Business plan and above only
  
• Make sure that you have uploaded products in EasyStore and here is a guide on how to add products in EasyStore.
  
• Kindly ensure that you have added products in EasyStore and the inventory control is under EasyStore tracks inventory of this product

You can look into the Inventory Forecasting under > Inventories

You are able to view when is the product stock will run out based on the following attributes under inventory forecasting:

• Quality in stock
• Quality sold (will list out the product that is included in orders placed in the selected date range)
• Average quantity sold (daily)
• Stock runs out in (X days or Out of Stock)

💡 Tips : The quality in stock is editable, just click on the pencil ✏️ icon & change the quantity > Save and it will be updated! There are 2 ways to change/edit your product inventory in EasyStore:

• Manual and Bulk
• Add and Set
  
  Besides, you're able to filter the product forecasting by:
• All Products OR Out of Stock products
• Selected date range (by day, weekly, daily, year)
  
  

3. Theories behind inventory forecasting

Here would be the theories behind inventory forecasting:

Average quantity sold = Total quantity sold ÷ Total days (selected date range).

For example:

Total quantity sold 50 ÷ Total days 7 days = 7 average quantity sold

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Stock runs out at = Quantity in stock ÷ Average quantity sold

For example:

Quantity in stock (100) ÷ Average quantity sold (12) = stock runs out in 8 days

Updated on: 22/04/2024