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      Parameters impacting the demand forecast

      2. Parameters impacting the demand forecast

      The buy module in Nextail is a solution for forecasting demand for fashion products in preparation for the upcoming season. It consists of two major structures: potential and order scheduling, each of which has factors that determine the forecast.


      These factors include: 

      • comparable products
      • reference weeks
      • selling perimeter
      • seasonality
      • and rate of sales and quantity.

      The buy module also takes into account external factors:

      • trend factors
      • seasonality (Based on the past 3 years of sales data and adjusted with trend and seasonality)
      • performance in the clusters.


      2.1. Parametrization


      Once the DF is calculated, you can set different parameters that will affect the final quantity to buy

      • Expected sellthrough: This refers to the % of the product quantity that you will have sold at the end of the selling perimeter, based on the sales that were estimated. This is the parameter that can be modified.

      In relation with the Expected sell-through, the quantity that you will have left of the product once the selling perimeter finishes. The lower the expected sell through, the higher this quantity will be.


      The final proposed quantity will vary depending on the expected sell through set




      • Carry over: You can also indicate if you have carry overs, or you want to have them in the next season (continuity products)
        • Quantity you have left from last season: number of units you have of the product left.
        • Expected sales quantity - Carry over units = Recommended quantity to buy
        • Quantity you want to carry over for next season: number of units you want to carry over of the product to sell in the next season. 
        • Expected sales quantity + Carry over units = Recommended quantity to buy

      • Minimum display: Finally, you can set a minimum display of units you want to assure in your stores. Minimum number of units that you want to have for each size in each store of the product you are buying. This number of units will be added up to the total recommended quantity to buy, in case it is not already covered with the initial proposal.