Inventory Forecasting Overview
Inventory Forecasting is the first module within the Inventory Optimization suite. The full suite of modules comprising:
- Inventory Forecasting
- Inventory Families and Groupings
- Inventory Optimization
Before inventory levels can be optimized, it is essential that sales forecasts are as accurate and reliable as possible. The Forecasting Module addresses this requirement by providing the tools to achieve this.
Given that the forecasting algorithms base their calculations exclusively on sales history, it is essential that the sales history (as held in the forecasting system) is an accurate reflection of the sales demand made on the company's inventory (i.e., it should include any sales lost because there was no inventory available to satisfy a demand).
The Sales Orders system outputs invoices, debit notes, credit notes and dispatch notes to the forecasting sales history. Also, Initial History Creation enables you to build the forecasting sales history using inventory movements as it's source.
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