ServiceForecasting
Forecasting & Inventory
Forecasting and decision support for inventory and availability – so you hold the stock that sells, where it sells, without tying up more cash than needed.
Method · Operations & supply chain
Forecast & Inventory Model
A method for forecasting demand and setting buffers and reorder logic – so inventory decisions are based on expected demand and lead times.
What it is
The Forecast & Inventory Model connects a demand forecast to the decisions that depend on it: what to order, when, and where to hold it. It accounts for seasonality, promotions, trends and the lead times of your supply chain.
The model is built to be used by your team. It flags exceptions rather than requiring every product to be checked by hand.
When to use it: Use it when stock-outs or overstock are frequent, when lead times are long, or when inventory is spread across several warehouses and fulfilment models.
What goes in
- Sales history
- Lead times
- Seasonality and promotions
What you get
- A demand forecast
- Reorder logic
- Buffer levels
How it works
- Clean the historyPrepare sales history and correct for stock-outs and one-off events.
- ForecastModel demand including seasonality, promotions and trend.
- Set buffers and reorder pointsTranslate forecast and lead times into order logic.
- MonitorFollow forecast accuracy and act on exceptions.
Decisions this helps you make
- Set inventory levelsOperations & supply chain
- Improve the forecastOperations & supply chain
Typical KPIs
- Forecast accuracy
- In-stock rate
- Days of cover
Where this method is used
Want to apply this to your business?
We can run a first assessment on your own data and show what the method would change in your decisions.