This article outlines the process for utlising the Inventory replishment report. The inventory replenishment report in Lightspeed Retail (X-Series) helps you efficiently manage your stock by using demand forecasting to determine how much inventory you should order. This process relies on analysing past sales data to make informed decisions about future stock levels.
How to Access the Inventory Replenishment Report
- Navigate to Reporting > Inventory Reports.
- Click on the Replenishment tab.
- Filtering
- The default date range forecasts the next four weeks, but you can adjust the range as needed.
- You can also view demand forecasting results per outlet to ensure each location has adequate stock levels and receive location-specific order recommendations.
Understanding the Report
| Forecasted demand | This column estimates the stock needed over a chosen period based on historical sales data. Example: To forecast stock needs for the next six weeks, select a 6-week forecast in the date picker. The column will display projected stock requirements for each SKU. |
| Suggested Order Quantity | Suggested order quantity subtracts closing stock and inbound inventory from forecasted demand, predicting the optimal stock order for the selected period. |
Key Calculations in the Report
| Items Sold per Day (excluding stockouts) | This figure averages daily sales over a 6-week period, excluding days when the item was out of stock. Calculation: Total units sold ÷ Days in stock Example: If 50 units sold over 42 days and the item was out of stock for 10 days: 50 ÷ 32 = 1.56 units/day |
| Missed Sales | This metric estimates the number of sales lost due to stockouts. Calculation: Items sold per day × Days out of stock Example: If the item sold 1.56 units/day and was out of stock for 10 days: 1.56 × 10 = 16 units |
| Forecasted Demand | Forecasted demand estimates the number of units needed over a forecast period to meet expected demand. Calculation: Items sold per day × Total days in the forecast period Example: If daily sales average 1.56 units and the forecast period is 42 days: 1.56 × 42 = 66 units |
| Suggested Order Quantity | This is the optimal number of units to order, accounting for current stock and incoming inventory. Calculation: Forecasted demand − Current stock − Incoming inventory Example: If forecasted demand is 66 units, current stock is 50 units, and no inventory is incoming: 66 − 50 = 16 units |
Tips for effective use
- Regular Updates: Run the report regularly (e.g., weekly) to adjust your orders based on updated sales trends.
- Adjust Parameters: Modify the forecast period to align with different sales cycles (e.g., 4-week or 8-week cycles).
- Monitor Stockouts: Track stockouts to better understand missed sales and refine ordering strategies accordingly.