Why is Nextail proposing replenishment to some SKU–stores even when the demand forecast is not high?
Nextail may propose replenishment to some SKU–stores even when the demand forecast is not high due to one or more of the following reasons:
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Minimum displays
The SKU–store has minimum displays configured (soft or hard), which can trigger additional replenishment. -
Visual Rules
Configured visual rules may incentivize the algorithm to send extra units so the product complies with those rules. -
Stock balance across sizes
Some sizes may not be selling well but are holding a lot of warehouse stock. The model may propose extra units to maintain a balanced stock across sizes and prevent high leftover inventory at the end of the season. -
Low Sales Threshold
If the Sales Threshold for the product is low, the system may propose additional units above the forecasted demand.