The formula that can be used to forecast inventory is: (Inventory days / Cost of sales) x 365.
Inventory forecasting can be defined as the process in which companies tend to make you of their past inventory data or information to estimate, predict ad forecast the inventory they will need in the future and by doing this it prevent the companies from running of inventory.
Most companies tend to make use of Reorder level so as to avoid running out of stock.
The formula that can be used to forecast inventory is (Inventory days / Cost of sales) x 365.
Therefore the formula that can be used to forecast inventory is: (Inventory days / Cost of sales) x 365.
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