Inventory Forecasting & Planning Report - User Guide

This report provides a complete view of inventory forecasting, demand planning, cost analysis, and reorder recommendations. It combines your historical sales data, current inventory levels, cost information, and production planning to deliver actionable insights for smart inventory management.

Business Meaning: Unique identifier for each product
​Calculation: System-generated product identifier
​Use Case: Primary reference for joining with other systems and reports

Business Meaning: Human-readable product name
​Calculation: Product master data
​Use Case: Display and identification purposes in reports and dashboards

Business Meaning: Your internal SKU/part number for the product
​Calculation: Product master data
​Use Case: Inventory tracking, warehouse operations, and system integration

Business Meaning: Product classification (Simple Product, Kit, etc.)
​Calculation: Product master data classification
​Use Case: Different handling logic for kits versus simple products

Business Meaning: The current average cost per unit of this product in your inventory
​Calculation: Product's weighted average cost from inventory layers, or falls back to average cost from last 90 days of sales
​Use Case: Accurate inventory valuation and margin calculations
​Decision Impact: Helps determine true profitability and pricing strategies

Business Meaning: Total dollar value of all current inventory for this product
​Calculation: Sum of (remaining inventory quantity × cost) across all inventory batches
​Use Case: Understanding capital allocation and investment per product
​Decision Impact: Identifies which products tie up the most cash

Business Meaning: Average cost of goods sold over the last 30 days
​Calculation: Average cost from actual sales transactions in past 30 days
​Use Case: Recent cost trend analysis and COGS validation
​Decision Impact: Shows if your actual costs match your inventory cost assumptions

Business Meaning: The most recent cost when this product was last sold
​Calculation: Cost from the most recent sale transaction
​Use Case: Spot current cost trends and identify cost changes
​Decision Impact: Indicates immediate cost direction for purchasing decisions

Business Meaning: Average number of different cost layers per warehouse
​Calculation: Average count of active cost batches across warehouses
​Use Case: Identifying products with complex cost management
​Decision Impact: High complexity may indicate need for simplified sourcing

Business Meaning: Current cash investment in on-hand inventory
​Calculation: Current stock quantity × Current average cost
​Use Case: Cash flow analysis and working capital management
​Decision Impact: Prioritizes which products to focus on for capital efficiency

Business Meaning: Cash needed for next reorder based on lead time + safety stock
​Calculation: 30-day daily sales × cost × (lead time days + 20 safety days)
​Use Case: Cash flow planning and budget allocation
​Decision Impact: Helps plan purchasing budgets and cash requirements

Business Meaning: How many times per year you sell through your inventory investment
​Calculation: (Annual sales cost ÷ Average inventory value) × 4
​Use Case: Efficiency measurement of working capital usage
​Decision Impact: Higher turns = better capital efficiency; target varies by industry

Business Meaning: How many days of sales your current inventory investment represents
​Calculation: Inventory value ÷ Daily sales value (based on 30-day average)
​Use Case: Liquidity analysis and cash flow optimization
​Decision Impact: Lower is generally better for cash flow; balance with service levels

Business Meaning: Statistical measure of how much your product costs fluctuate over time
​Calculation: Standard deviation of all historical cost data from sales
​Use Case: Risk assessment for cost planning and budgeting
​Decision Impact: High variance = unpredictable costs requiring larger safety margins

Business Meaning: Cost volatility as percentage of average cost
​Calculation: (Cost standard deviation ÷ Average historical cost) × 100
​Use Case: Relative risk comparison across products
​Decision Impact: 10% = stable, 50%+ = very volatile requiring risk management

Business Meaning: Whether costs are rising or falling recently (30-day vs 90-day comparison)
​Calculation: ((30-day average cost - 90-day average cost) ÷ 90-day average cost) × 100
​Use Case: Timing purchasing decisions based on cost trends
​Decision Impact: Positive = costs rising (order sooner), Negative = costs falling (delay orders)

Business Meaning: Dollar value at risk if slow-moving inventory becomes obsolete
​Calculation: If inventory will last more than 365 days at current sales rate, shows total inventory value, otherwise zero
​Use Case: Identifying products with high obsolescence risk
​Decision Impact: Prioritizes which slow movers to liquidate or discount first

Business Meaning: Physical inventory currently in your warehouses
​Calculation: Sum of physical inventory across all warehouse locations
​Use Case: Immediate availability for order fulfillment
​Decision Impact: Base level for all availability calculations

Business Meaning: Inventory on purchase orders that will arrive soon
​Calculation: Sum of all outstanding purchase order quantities
​Use Case: Near-term availability planning
​Decision Impact: Affects timing of next purchase orders

Business Meaning: Inventory already allocated to customer orders
​Calculation: Sum of all allocated/reserved quantities for pending orders
​Use Case: Understanding what's truly available vs just on hand
​Decision Impact: Critical for accurate availability promises to customers

Business Meaning: Total units sold in the last 7 days
​Calculation: Sum of all sales quantities where order date falls within last 7 days
​Use Case: Recent demand pattern analysis and short-term trending
​Decision Impact: Useful for identifying sudden demand changes or promotions impact

Business Meaning: Total units sold in the last 14 days
​Calculation: Sum of all sales quantities where order date falls within last 14 days
​Use Case: Short-term demand pattern with slightly more stability than 7-day
​Decision Impact: Good for weekly/bi-weekly ordering cycles

Business Meaning: Total units sold in the last 30 days
​Calculation: Sum of all sales quantities where order date falls within last 30 days
​Use Case: Monthly demand analysis and trend identification
​Decision Impact: Common baseline for reorder point calculations

Business Meaning: Total units sold in the last 45 days
​Calculation: Sum of all sales quantities where order date falls within last 45 days
​Use Case: Intermediate-term demand analysis
​Decision Impact: Useful for products with 6-8 week seasonal patterns

Business Meaning: Total units sold in the last 60 days
​Calculation: Sum of all sales quantities where order date falls within last 60 days
​Use Case: Seasonal trend analysis and medium-term planning
​Decision Impact: Good baseline for products with quarterly variations

Business Meaning: Total units sold in the last 90 days
​Calculation: Sum of all sales quantities where order date falls within last 90 days
​Use Case: Quarterly demand analysis and seasonal pattern identification
​Decision Impact: Useful for annual planning and budgeting

Business Meaning: Total units sold in the last 120 days
​Calculation: Sum of all sales quantities where order date falls within last 120 days
​Use Case: Long-term trend analysis and seasonal planning
​Decision Impact: Good for identifying annual cycles and long-term trends

Business Meaning: Average units sold per day over the last 7 days
​Calculation: Total 7-day sales ÷ 7 days
​Use Case: Current demand rate for immediate planning
​Decision Impact: Most reactive metric for short-term stock-out prevention

Business Meaning: Average units sold per day over the last 14 days
​Calculation: Total 14-day sales ÷ 14 days
​Use Case: Recent demand rate with less day-to-day volatility
​Decision Impact: Good for weekly reorder cycles and short lead times

Business Meaning: Average units sold per day over the last 30 days
​Calculation: Total 30-day sales ÷ 30 days
​Use Case: Standard demand rate for most planning purposes
​Decision Impact: Most commonly used velocity for reorder points and safety stock

Business Meaning: Average units sold per day over the last 45 days
​Calculation: Total 45-day sales ÷ 45 days
​Use Case: Intermediate-term demand rate smoothing seasonal variations
​Decision Impact: Good for products with moderate seasonality

Business Meaning: Average units sold per day over the last 60 days
​Calculation: Total 60-day sales ÷ 60 days
​Use Case: Medium-term demand rate for seasonal planning
​Decision Impact: Primary velocity used in your reorder calculations

Business Meaning: Average units sold per day over the last 90 days
​Calculation: Total 90-day sales ÷ 90 days
​Use Case: Seasonal demand rate for quarterly planning
​Decision Impact: Good for annual budgeting and long-term contracts

Business Meaning: Average units sold per day over the last 120 days
​Calculation: Total 120-day sales ÷ 120 days
​Use Case: Long-term trend analysis smoothing seasonal variations
​Decision Impact: Useful for annual planning and identifying long-term trends

Business Meaning: How recent demand compares to medium-term average
​Calculation: (7-day velocity - 60-day velocity) ÷ 60-day velocity
​Use Case: Identifying accelerating or declining demand trends
​Decision Impact: Positive = accelerating demand, Negative = declining demand

Business Meaning: Total inventory including what's coming in minus what's already allocated
​Calculation: Quantity on hand + Quantity incoming - Quantity pending
​Use Case: Total near-term availability including purchase orders
​Decision Impact: Shows complete picture of inventory position

Business Meaning: Inventory available for new orders right now
​Calculation: Quantity on hand - Quantity pending
​Use Case: Immediate order fulfillment capability
​Decision Impact: Critical for customer promise dates and stock-out prevention

Business Meaning: Total available including planned production
​Calculation: Base available quantity + Planned assembly production quantity
​Use Case: Complete availability picture including production pipeline
​Decision Impact: Most comprehensive availability metric for planning

Business Meaning: How many days current inventory will last at recent sales pace
​Calculation: Available quantity ÷ 7-day daily velocity
​Use Case: Immediate stock-out risk assessment
​Decision Impact: <7 days = immediate risk, >30 days = probably safe short-term

Business Meaning: Days of inventory at 14-day average sales rate
​Calculation: Available quantity ÷ 14-day daily velocity
​Use Case: Short-term inventory planning with less volatility
​Decision Impact: Good for weekly ordering cycles

Business Meaning: Days of inventory at 30-day average sales rate
​Calculation: Available quantity ÷ 30-day daily velocity
​Use Case: Standard inventory planning metric
​Decision Impact: Most common metric for inventory management decisions

Business Meaning: Days of inventory at 45-day average sales rate
​Calculation: Available quantity ÷ 45-day daily velocity
​Use Case: Medium-term planning with seasonal smoothing
​Decision Impact: Good for quarterly planning cycles

Business Meaning: Days of inventory at 60-day average sales rate
​Calculation: Available quantity ÷ 60-day daily velocity
​Use Case: Primary metric used for your reorder timing
​Decision Impact: Core metric for most reorder decisions in your system

Business Meaning: Days from order placement to inventory receipt
​Calculation: Product-specific lead time or system default shipping time
​Use Case: Reorder timing and safety stock calculations
​Decision Impact: Longer lead times require earlier ordering and higher safety stock

Business Meaning: Minimum Order Quantity required by supplier
​Calculation: Lowest quantity tier from supplier quotation
​Use Case: Order quantity planning and cost optimization
​Decision Impact: May force larger orders than immediately needed

Business Meaning: Buffer inventory to prevent stock-outs during lead time
​Calculation: Currently set to zero (60-day velocity × lead time ÷ 2 × safety factor)
​Use Case: Risk management for demand variability
​Decision Impact: Higher safety stock = less risk but more capital tied up

Business Meaning: Inventory level that triggers a new purchase order
​Calculation: 60-day daily velocity × lead time days
​Use Case: Automated reorder triggers and inventory management
​Decision Impact: Too high = excess inventory, Too low = stock-outs

Business Meaning: When to place next order based on 60-day velocity
​Calculation: Today + (Available quantity - Reorder point) ÷ Daily velocity (60-day)
​Use Case: Proactive order timing to prevent stock-outs
​Decision Impact: Order before this date to maintain service levels

Business Meaning: Order timing based on recent 14-day sales pattern
​Calculation: Today + (Available quantity - Reorder point) ÷ Daily velocity (14-day)
​Use Case: Reactive ordering based on current demand trends
​Decision Impact: More responsive to recent changes but potentially more volatile

Business Meaning: Order timing based on 30-day sales pattern
​Calculation: Today + (Available quantity - Reorder point) ÷ Daily velocity (30-day)
​Use Case: Balanced approach between responsiveness and stability
​Decision Impact: Good middle ground for most products

Business Meaning: Order timing based on 45-day sales pattern
​Calculation: Today + (Available quantity - Reorder point) ÷ Daily velocity (45-day)
​Use Case: Moderate smoothing of seasonal variations
​Decision Impact: Good for products with known seasonal patterns

Business Meaning: Order timing based on 90-day sales pattern
​Calculation: Today + (Available quantity - Reorder point) ÷ Daily velocity (90-day)
​Use Case: Long-term planning with seasonal smoothing
​Decision Impact: More stable but less responsive to recent changes

Business Meaning: Order timing based on 120-day sales pattern
​Calculation: Today + (Available quantity - Reorder point) ÷ Daily velocity (120-day)
​Use Case: Very stable planning for predictable products
​Decision Impact: Most conservative approach with least volatility

Business Meaning: Recommended order quantity to cover lead time plus safety buffer
​Calculation: 30-day daily velocity × (lead time days + 20 safety days)
​Use Case: Conservative ordering to ensure stock availability
​Decision Impact: Higher quantities but lower risk of stock-outs

Business Meaning: Quantity to cover exactly 30 days of sales
​Calculation: 45-day daily velocity × 30 days
​Use Case: Frequent ordering with minimal inventory investment
​Decision Impact: Lower inventory but requires more frequent orders

Business Meaning: Quantity to cover exactly 45 days of sales
​Calculation: 45-day daily velocity × 45 days
​Use Case: Balance between order frequency and inventory investment
​Decision Impact: Good for products with moderate lead times

Business Meaning: Quantity to cover exactly 60 days of sales
​Calculation: 30-day daily velocity × 60 days
​Use Case: Longer supply cycles with less frequent ordering
​Decision Impact: Higher inventory but fewer orders and potentially better pricing

Business Meaning: Quantity to cover exactly 90 days of sales
​Calculation: 90-day daily velocity × 90 days
​Use Case: Quarterly ordering cycles and seasonal planning
​Decision Impact: Bulk ordering with seasonal considerations

Business Meaning: Quantity to cover exactly 120 days of sales
​Calculation: 120-day daily velocity × 120 days
​Use Case: Long-term bulk ordering and annual contracts
​Decision Impact: Maximum bulk benefits but highest inventory investment

Business Meaning: Whether current inventory will last more than one year
​Calculation: TRUE if recommended order date is more than 1 year from today
​Use Case: Identifying products with excess inventory
​Decision Impact: "true" indicates potential obsolescence risk requiring action

Business Meaning: Units expected from active assembly orders
​Calculation: Sum of planned production quantities from incomplete assembly orders
​Use Case: Including production pipeline in availability planning
​Decision Impact: Reduces need for purchased inventory when production is planned

This comprehensive analysis transforms your inventory data into actionable intelligence for optimal business performance! 📈✨