Methods and systems for synchronizing distribution center and warehouse demand forecasts with retail store demand forecasts
A method and system for forecasting product order quantities required to meet future product demands for a retail distribution center or warehouse. The method includes the steps of determining for each one of a plurality of retail stores, a long range order forecast for a product sold by said retail store; accumulating said long range order forecasts for said plurality of retail stores to generate a distribution center demand forecast for said retail distribution center; comparing said distribution center demand forecast with current and projected future inventory levels at said distribution center of said product; and determining from distribution center demand forecast and said current and projected future inventory levels suggested order quantities necessary for maintaining a minimum inventory level sufficient to meet said distribution center demand forecast for said product.
1 . A method for forecasting product order quantities required to meet future product demands for a retail distribution center, the method comprising the steps of:
determining for each one of a plurality of retail stores, a long range order forecast for a product sold by said retail store;
accumulating said long range order forecasts for said plurality of retail stores to generate a distribution center demand forecast for said retail distribution center;
comparing said distribution center demand forecast with current and projected future inventory levels at said distribution center of said product; and
determining from distribution center demand forecast and said current and projected future inventory levels suggested order quantities necessary for maintaining a minimum inventory level sufficient to meet said distribution center demand forecast for said product.
2 . The method in accordance with claim 1 , further comprising the step of:
adjusting said distribution center demand forecast to account for a planned promotion of said product occurring during a period of time contained within said distribution center demand forecast.
3 . The method in accordance with claim 1 , further comprising the step of:
comparing said distribution center demand forecast and suggested order quantities with actual distribution center demand and order information when available to determine an accuracy measurement of said method.
4 . A system for forecasting product order quantities required to meet future product demands for a retail distribution center, the system comprising:
means for determining for each one of a plurality of retail stores, a long range order forecast for a product sold by said retail store;
means for accumulating said long range order forecasts for said plurality of retail stores to generate a distribution center demand forecast for said retail distribution center;
means for comparing said distribution center demand forecast with current and projected future inventory levels at said distribution center of said product; and
means for determining from distribution center demand forecast and said current and projected future inventory levels suggested order quantities necessary for maintaining a minimum inventory level sufficient to meet said distribution center demand forecast for said product.
5 . The system in accordance with claim 5 , further comprising:
means for adjusting said distribution center demand forecast to account for a planned promotion of said product occurring during a period of time contained within said distribution center demand forecast.
6 . The system in accordance with claim 4 , further comprising:
means for comparing said distribution center demand forecast and suggested order quantities with actual distribution demand and order information when available to determine an accuracy measurement of said system.