Inventory Planning: A Definitive Guide to Forecast Optimal Inventory Levels

Retail sales in November 2022 rose 4.5% YoY. Senior Industry Analyst Ted Rossman explained that this rise “marks the slowest year-over-year retail sales growth since 2020,”. This shows that the pandemic significantly impacted consumer behavior, market demand, and supply chain operations. As retailers and manufacturers try to rebuild responsibly in a post-pandemic world, the importance of effective inventory planning has never been greater.  

Forecasting optimal inventory levels is a big part of inventory management. It helps retailers and manufacturers minimize the fear of having too much or too little inventory during the forecasted period. However, it is also one of the most difficult aspects to get right.