To nail inventory forecasting, I focus on metrics like demand trends and lead times—like guessing pizza delivery timing, but with fewer toppings! Once, I used safety stock levels as my "crystal ball" and boom, reduced stockouts by 15%! Keep it simple: watch sales velocity and seasonal shifts like you're tracking your favorite TV show’s plot twists!

There are few metrics to calculate the inventory forecast Use current year forecast from your customers Use previous year's sales history Consider any promotions, special events, seasonal sales etc for upcoming period Consider population and demographic change since last year to add to the forecast Compare price level, inflation, economic condition with last year to make forecast decision Etc

Accurate inventory forecasting starts with understanding your business, not just jumping to tools or tech. Begin by identifying external drivers that impact demand like promotions, pricing changes, and product launches can all create fluctuations. Once you understand these factors, start gathering relevant data. Rather than relying on a single method, consider building a model that pulls from multiple insights. This could include time series analysis, machine learning, or predictive models, depending on your needs. The goal is to create a forecast grounded in real-world drivers, ensuring it aligns with the unique demand patterns of your business.

Start by aligning your metrics with your business goals and inventory characteristics. Key metrics to consider include: ? Demand Forecast Accuracy: Measures how close your forecasts are to actual demand. ? Lead Time: Helps determine the reorder point by understanding the time it takes for replenishment. ? Stockout Rate: Indicates how often products are out of stock. ? Carrying Costs: Tracks the cost of holding inventory, impacting profitability. ? Inventory Turnover: Shows how quickly inventory is sold and replaced. ? Safety Stock Levels: Ensures enough stock to meet demand fluctuations. Focusing on these metrics balances customer demand, minimizes costs, and optimizes stock levels.