Top Items to Replenish
In this article
we will discuss the Top Items to Replenish report on the Report pages and go deeper into the logic and KPI's and what they mean.
| Before the Order Proposals and the Replenishment report for your store are generated, you will need to set up Lead Times and Weeks of Stock for your store. |
Order Proposal based on Ideal Stock
The Shelf Planner engine uses your sales forecast for the coming weeks to understand whether you are understocked, or overstocked.
You do not necessarily want to replenish all the items in your store. You can select a single item or place multiple orders for the same item over time.
In the example below, the Order Proposal for the selected product is 416 units (4). This number is based on:
- Ideal Stock (1) for the product (based on product parameters and sales forecast)
- Current Stock (2) - your current inventory, synced with your store)
- Inbound Stock (3) - any incoming orders that you placed
Order Proposal based on Minimum Stock
For some of your products, it can be difficult to create an accurate forecast. Examples could be newly launched products, items with random sales, or items with extreme seasonality.
Our machine learning algorithms will pick up this behaviour and highlight these items in that case. For some of these products, it might be better to set a Minimum Stock threshold instead of using the Ideal Stock for the Order Recommendations.
Set Minimum Stock
To set a minimum stock, open the products settings:
In this example, we set the Minimum Stock to 750 units. Instead of using the Weeks of Stock and the Lead Time to define the order proposals, the Min Stock is used to determine the Order Proposal:
As shown in the example above, the current stock (1) is 514 units. There is no incoming Stock (2). Becuase the minimum is set to 750 units, the Order Proposal is 750 - 514 = 236 units.
The Weeks of Stock (4) is in this example ignored.
When we set the Minimum Stock back to 100, the Order Proposal is recalculated:
The Min Stock is now set to 100 and the Ideal Stock is using the Weeks of Stock and Lead Time (1). With a Lead Time of 2 and a Weeks of Stock setting of 6 weeks, the Ideal Stock uses 6 weeks of Sales to calculate the Ideal Stock, in this case 426 units:
As you can see in the example below, the Forecast for the next 8 weeks is 593 units, hence the Weeks to Stock out is 7 weeks and technically, this item is 'overstocked':
