How do you choose the best inventory forecasting method?

Asked 2 years ago

My inventory forecasting methods are quite slow and tedious. I need a better method as soon as possible or I fear I'll fall behind... How do I choose the best inventory forecasting method for my Shopify business?

Elijah Thompson

Monday, June 27, 2022

You must choose an ideal forecasting method that supports your business strategy, goals, and timelines for an accurate inventory prediction. Here are some inventory forecasting methods that you may use:

  1. Naive Forecasting: It helps predict future results by analyzing the past data, but it is the least reliable inventory method.
  2. Qualitative Forecasting: This strategy relies on educated predictions based on prior experience and knowledge of the market working. You can tell when demand trends are about to shift by looking at the human element within the market.
  3. Quantitative Forecasting: Quantitative approaches combine historical data with mathematical algorithms to forecast future performance. Outside variables, such as new releases, holiday seasons, and other market requirements, are factored into these estimates.
  4. Trend Forecasting: This forecasting strategy examines stock trends in response to changes in customer demand. It displays the kind of stock products a consumer is interested in, and the information gathered will aid sales and marketing teams in developing future sales efforts.
  5. Graphical Forecasting: This approach represents data visually and is frequently easier to comprehend. It will show you your stock's overall upward or negative sales movement without getting into great detail.




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