Demand Forecasting

Demand Forecasting

SmartWMS uses statistical models to forecast future demand for your products, helping you avoid stockouts and overstock situations.

Forecasting Method

SmartWMS uses exponential smoothing (Holt-Winters method):

• Accounts for trend (increasing/decreasing demand)
• Detects seasonality patterns
• Updates automatically as new sales data comes in

Viewing Forecasts

• Go to Intelligence → Optimal Orders
• See the 30-day demand forecast per product
• Compare forecast vs actual recent demand

Forecast Accuracy

The system tracks forecast accuracy (MAPE — Mean Absolute Percentage Error). Products with high MAPE may have:

• Highly seasonal demand
• Recent demand spikes (promotions, stockouts)
• Insufficient historical data (new products)

Using Forecasts for Purchasing

The Optimal Orders page combines:

• 30-day forecast
• Current stock level
• Safety stock setting
• Lead time

→ Generates a recommended purchase quantity per product.

Limitations

• Forecasts require at least 30 days of order history
• Promotions and seasonality must be accounted for manually
• New products use category averages until sufficient history accumulates