ENTREPRENEURSHIP

Detailed explanation-1: -Replenishment is the stock required to meet inventory forecasts based on inventory goals, supply and demand.

Detailed explanation-2: -Demand forecasting allows businesses to optimize inventory by predicting future sales. By analyzing historical sales data, demand managers can make informed business decisions about everything from inventory planning and warehousing needs to running flash sales and meeting customer expectations.

Detailed explanation-3: -To avoid a stockout, you need to predict the product demand during that time. This is called lead time demand. Without this calculation, you run the risk of going out of stock on items while you are waiting for new ones. Lead time demand is calculated by multiplying average lead time in days with average daily sales.

Detailed explanation-4: -Inventory forecasting allows you to predict how much inventory you can sell in a specific period of time. For that objective data of inventory consumption, inventory sales, and inventory purchase records are used. Again, accuracy is a very important factor for inventory forecasting.