Terminologies

  1. Average Daily Sales
    1. It indicates the Average Sales value of the product under evaluation based on Sales History.
  2. Maximum Daily Sales.
    1. It indicates the Average Sales value of the product under evaluation based on Sales History.
  3. Average Lead Time.
    1. It indicates the Average lead time the product under evaluation takes to reach its destination based on Purchase History data.
  4. Maximum Lead Time.
    1. It indicates the Maximum lead time the product under evaluation takes to reach its destination based on Purchase history data.
  5. Suggested safety stock.
    1. Suggested Safety stock is calculated from Average Lead Time, Average Daily Sales, Maximum Lead Time, and Maximum Daily Sales.
  6. Suggested Min quantity.
    1. It suggests the Minimum quantity of product under evaluation that should be ordered to avoid an Out-Of-Stock situation.
  7. Suggested Maximum Quantity.
    1. It suggests the Maximum quantity of products under evaluation that should be ordered to avoid Over Stock situation.


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