Demand adjustments

Demand adjustments allow you to manually increase or decrease your calculated sales velocity.

They are used when you know future demand will differ from historical patterns.

Adjustments modify the average daily sales rate, which then flows through all forecasting calculations.

How demand adjustments work

Stockie first calculates average daily sales using your lookback period (excluding stockout days).

A demand adjustment is then applied to that daily sales rate.

Adjusted daily sales = calculated daily sales × adjustment factor

This adjusted value is used to calculate:

  • Safety stock (days × adjusted daily sales)
  • Target cover (days × adjusted daily sales)
  • Lead time demand (days × adjusted daily sales)
  • Suggested reorder quantities

The adjustment changes the demand foundation — not just one part of the calculation.

Example

If:

  • Calculated daily sales = 5 units/day
  • Demand adjustment = +20%

Adjusted daily sales = 6 units/day

If target cover = 30 days:

Target inventory = 30 × 6 = 180 units

Without the adjustment, target inventory would have been 150 units.

The adjustment increases every downstream calculation proportionally.


When to use demand adjustments

Consider increasing demand if:

  • A promotion or campaign is coming
  • Seasonality is approaching
  • Distribution is expanding
  • Sales are trending upward faster than your lookback captures

Consider decreasing demand if:

  • A promotion ended
  • A channel was removed
  • You expect a temporary slowdown

Why demand adjustments matter

Forecasting relies on historical data.

But historical data cannot predict:

  • Upcoming marketing activity
  • Planned price changes
  • Strategic business decisions

Demand adjustments allow you to incorporate business knowledge into the forecast.

They give you control when you expect the future to differ from the past.

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