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Days Left vs Stock Cover

Written by Youri Moskovic

What is Stock Cover?

Stock cover is the amount of stock you have left, measured in days. By default, Prediko sets the Stock Cover at 90 days and the Safety Stock at 30 days. The 'Healthy' days left would mean keeping your stock delivery in this range (e.g between 30 and 90 days).

Prediko also incorporates forecasted sales data and predictive algorithms to ensure that stock cover recommendations align with expected sales trends.

Prediko calculates order recommendations by considering key factors such as forecasted sales, days of cover, and lead time. These factors ensure that inventory levels are optimized to meet demand without overstocking or understocking.

For example, if you set a days of cover of 180 days, Prediko will recommend quantities that sustain demand for that period. This configurability allows you to tailor recommendations to your specific inventory strategy.

How does it work? When we share buying recommendations, our recommended units are calculated to the maximum stock cover range at delivery. e.g., we would tell you to order enough to last for 90 days after the delivery. We also make sure to let you know when to order so as not to go below the lower range at delivery. E.g. if your lead time is 15 days, we would prompt you to place an order when you have 45 days left, so at delivery, your minimum would be 30 days left.

Additionally, you can hover over the purple Sparkles icon in the "to buy (live)" column of the Prediko app to view detailed explanations of the recommended quantities, including how forecasted sales, days of cover, and lead time were factored into the calculation.

By understanding these factors, you can adjust settings like days of cover or lead time to better align with your inventory strategy and gain confidence in Prediko's recommendations.

See how your Stock Health is calculated based on the Stock Cover days.

By leveraging these insights, you can ensure that your inventory levels are optimized to meet demand effectively.

What are the Days Left?

How many days will it take for you to sell through the stock, given the Plan that you have entered (sales/quantity)?

Note that we don't take In Transit into account when calculating Days Left.

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