Accurate inventory forecasting and demand planning are essential for any store that work with its own warehouses. The precise forecast allows for preventing out-of-stock for trending products, reduces overstocks, and in time identity dead inventory.
Opposite to inventory value report, inventory forecasting - also known as demand planning - asks questions for all three time periods:
- Past: How many products were sold and how fast?
- Current: What is the actual stock status?
- Future: How many products do we need and when?