Sales forecast is one of core features of Inventory Planner and is used as input for replenishment suggestions. The default forecasting method in Inventory Planner is based on historical sales for each product. We use the sales velocity that excludes periods of time when product was out of stock and also analyze recents sales trends.

Seasonality

If a product is marked as seasonal, the forecast will give more weight to sales 12 month ago instead of latest trends. This is a good way to account for holiday spikes
.
You can enable this for all products in Settings or for some products in variant details.

Stockout history

Inventory Planner automatically collects when the product was out of stock starting from the moment you connect your store. This data helps to estimate the demand correctly. For example, if you sell on average ten units of product A per month and the product is out of stock half a month the real demand for it is 20 units.

You can enable this for all products in Settings or for some products in variant details.

You can also manually edit days out-of-stock for previous months in variant details.

Top-down forecasting

Top-down forecasting should be used for seasonal products that don't have 12 months of sales history. When it is enabled, we compute sales forecast for product category and break it down into products, taking into account each product contribution into the category.

You can enable top-down forecasting in Settings.


Note: If you need to make additional changes to your forecast, read our article about the
Edit Forecast functionality.

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