How do you calculate forecasted inventory?

Asked 2 years ago

I have been informed by other Shopify users that forecasting inventory is very beneficial because I can get information on past data and predict future inventory. But I am unsure of how I can calculate forecasted inventory. Can you help me understand an easy way to do these calculations?

Inventory forecasting Inventory forecasting

Luciano Cash

Monday, June 27, 2022

Inventory forecasting is a technique for predicting future sales based on data gathered from economic trends, public sales data, and historical sales data. Use software that automatically calculates the inventory forecast to make your work easier. Inventory Planner's data-driven forecast system lets you quickly see what, how many, and when to order.
Inventory Planner calculates sales velocity (the number of units sold divided by days in stock) based on your Shopify store's sales history. When you know how many products your customers will buy over a particular period, you may figure out lead time and stock days to compute the appropriate order quantities.