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How Restock Quantity Calculations Work in Fabrikatör
How Restock Quantity Calculations Work in Fabrikatör

A Deeper Look at the Formula and Factors Behind Restock Suggestions

Sophia avatar
Written by Sophia
Updated this week

Understanding Restock Calculations

Fabrikatör uses a straightforward approach to calculate suggested restock quantities based on your inventory data and settings. This article explains how these calculations work to help you better understand and use our restock recommendations.

The Basic Formula

At its core, Fabrikatör calculates suggested restock quantities using this formula:

Suggested Restock = (Daily Sales Average × Days of Stock) - Current Stock - Incoming Stock

Where:

  • Daily Sales Average is calculated based on your forecasting days setting

  • Days of Stock is your specified coverage period

  • Current Stock is your available inventory

  • Incoming Stock includes all approved purchase orders

How Timeline Projections Work

Fabrikatör creates a day-by-day projection of your inventory to determine when and how much to restock:

  1. Current Stock Projection: The system starts with your current inventory level

  2. Daily Depletion: It subtracts your daily sales average for each day moving forward

  3. Incoming Stock Addition: It adds any incoming purchase orders on their expected arrival dates

  4. Stockout Date Identification: The system identifies when your inventory is projected to reach zero

  5. Lead Time Consideration: It factors in lead time to determine when orders need to be placed

Working with Historical Data

Fabrikatör uses your historical sales data to calculate daily sales averages:

  • When you first install Fabrikatör, it syncs up to one year of historical sales data

  • The system calculates daily averages based on your forecasting days setting

  • The system automatically uses all available historical data from Shopify

Optimizing Your Restock Calculations

To get the most accurate restock suggestions:

  1. Use Appropriate Forecasting Days: Select a period that reflects typical sales patterns for each product

  2. Set Accurate Lead Times: Ensure lead times match actual supplier delivery timeframes

  3. Adjust Days of Stock: Set coverage days for different product categories based on importance and sales velocity

  4. Ensure Complete Shopify Data: Make sure your Shopify sales history is complete for the most accurate forecasts

Frequently Asked Questions

Can I upload historical orders to be used for the forecasting?

No. Fabrikatör automatically syncs up to one year of historical sales data from your Shopify store when you first install the app. This Shopify data serves as the foundation for your sales forecasting and restock calculations. Currently, Fabrikatör only uses order data from Shopify and does not support importing historical orders from external sources.

Why do I see a warning icon next to some suggested restock quantities?

The warning indicates that Fabrikatör has low confidence in the suggestion, usually due to limited sales history or frequent stockouts. Try adjusting your forecasting days to include more historical data or use a longer period for more stable calculations.

How does Fabrikatör handle seasonal products?

For seasonal products, consider adjusting your forecasting days to include comparable periods from previous seasons. You can also manually adjust restock quantities during peak seasons while creating PO.

What about new products with limited sales history?

For new products, you may see a low confidence warning with your restock suggestions. You can manually set conservative restock quantities until sufficient sales history is established.

Can I set different calculation parameters for different product types?

Yes, you can customize lead times, days of stock, and forecasting days for each product individually or use bulk editing to update groups of similar products.

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