Weeks of Supply Analysis

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Business Challenge:
How long will my inventory last based upon current sales demand?

Analysis:
Report Builder enables you to monitor your inventory by utilizing the Weeks of Supply metric.  This allows you to avoid inventory stock outs and potential lost sales.  The Weeks of Supply metric is calculated by dividing Units On-hand by 4 week average sales units.

Let's now look at a commonly used scenario to manage inventory:

Report Details:

  • Attributes: Retailer, Store Name, Store Number, Style, Style Description
  • Metrics:  TY WTD WOS - 4WKS, TY WTD UNITS OH, TY WTD UNITS SLS, TY YTD UNITS SLS
Optional:
  • Attributes: Category and other relevant item or location attributes
  • Metrics: TRL SLS, RTL OH (TY/LY/VAR)
        

In the example above, we are looking at inventory at the Style/Door level by Retailer.  We created a Weeks of Supply View filter to focus on stores that have less than 5 Weeks of Supply On-Hand where at least 1 sales occurred last week.  By using the Page By features you can toggle between different styles and identify which store are close to stocking out.  In this case, 4 stores that have no inventory left to satisfy demand.

Additionally, you may want to look at inventory at the chain level by pulling in the Retailer attribute into the report and dragging out the individual locations.  When filtering on the Weeks of Supply metric, consider the rate at which you demand changes in order to best narrow your results.
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Posted 4 years ago

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