Move from units to days of cover
Units on hand are difficult to interpret without sales velocity. Divide available inventory by a representative daily sales rate to estimate days of cover, then compare it with supplier lead time and the desired safety buffer.
Use more than one velocity window for seasonal or fast-changing products. A recent seven-day pace and a steadier 30-day pace can expose acceleration before a stockout.
Include planned demand
Campaigns, creator posts, retail events, and discounts can change demand faster than historical averages predict. Flag products scheduled for promotion and estimate whether stock can support the expected lift.
When cover is tight, choose deliberately between replenishing, reducing promotion, shifting spend, recommending substitutes, or accepting a controlled stockout.
Find overstock with context
Slow-moving stock is not automatically a discount candidate. Check margin, product role, seasonality, bundle affinity, and whether poor visibility rather than weak demand is the problem.
Prefer actions that preserve value: improve merchandising, pair complementary products, target a relevant segment, or adjust replenishment before defaulting to a broad markdown.
Create a weekly inventory queue
- Review products below the lead-time-plus-buffer threshold.
- Flag promoted products with insufficient cover.
- Rank overstock by cash tied up and realistic actionability.
- Assign each exception an action, owner, and next review date.