Demand & inventory forecasting
Quantifying lost revenue due to non-optimized inventory management and forecasting demand by product SKU, allowing a business owner to know exactly how much inventory to buy and when.
- Data
- Sample dataset — no client information
- The question
- How much revenue is lost to out-of-stock days? What is the customer demand for each day? And how can our inventory strategy be optimized accordingly?
- Approach
- Forecast daily demand by product from historical sales using statistical techniques, then translate it into an order and production plan a business owner can follow.
- Key Findings
- By utilizing the proposed strategy, one could expect 28 fewer out-of-stock days, 10,265 fewer wasted units, and $20K more revenue year over year.