Inventory Forecasting

In this article:

Introduction
Things to take note
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