Demand Forecasting helps you accurately predict future demand and make better-informed decisions about what products to order and when. The forecast is calculated automatically and based on the history of your sales, your profit and days your stock is held before being sold.
- In the MyStore workspace, select Purchases → Purchasing Management.
- In the Forecast for field, specify how far ahead a forecast has to be prepared.
The app calculates demand metrics by the following formulas:
- Days of Supply = Available Qty ÷ Average daily sales
How long it will take to sell units of the product currently available in the warehouse.
- Future Demand = Forecast horizon × Average daily sales
How many units of the product you expect to sell ahead during the forecast period.
- Reordered Qty = Future Demand − Available Qty
How much to purchase to keep up with customer demand during the forecast period.
Based on the reordered quantity value you can create purchase orders.