Reading the Forecasted Demand
Forecasted Demand (Daily Demand) represents the expected quantity that will be sold in the next period. It is:
Based only on completed historical data
Calculated using SMA or WMA
Rounded to the nearest whole number
A higher value indicates faster-moving products.
Understanding Forecasted Stock Coverage
Forecasted Stock Coverage (Days to Cover) shows how long your current inventory will last based on forecasted demand.
Formula:
Available Inventory ÷ Forecasted Demand
This value is expressed in Days.
Predicted Future Stockout Date
This column estimates when inventory will run out if demand continues as forecasted.
Formula:
Current Date + Forecasted Stock Coverage
Displayed as a date in the format YYYY MMM dd.
How to Use This Report for Decision-Making
Use the Demand Forecasting Report to:
Identify products at risk of stockout
Prioritize replenishment orders
Compare forecasted demand across locations
Validate purchasing assumptions
Common Scenarios
High Forecasted Demand + Low Inventory
Indicates urgent replenishment is needed.
Low Forecasted Demand + High Inventory
May indicate overstocking or slowing sales.
Important Constraints to Keep in Mind
Forecasts are estimates, not guarantees
Sudden demand spikes may not be fully captured
Logic and weights are system-controlled
Summary
The Demand Forecasting Report provides a clear, consistent way to understand future demand and inventory risk. By combining historical data with proven forecasting models, it helps you make confident, data-driven inventory decisions.