Working with Stock Coverage

Owned by Miguel Correa Calvo
Last updated: Jul 03, 2024
1 min read

Overview

Stock coverage is a useful metric in retail inventory management, indicating the estimated duration that the current stock of a product will last based on its sales rate. It's often measured in time, like weeks or months. Understanding stock coverage helps maintain appropriate inventory levels, ensures product availability, and minimizes the risks of overstocking or stock shortages.

Role in Orchestration

Order orchestration can be driven by stock coverage, which allows prioritizing order preparation at stock locations based on their stock coverage. Learn more here.

Calculation

The formula for stock coverage is:

If the number of sales per period < 1 or if the item is not in the assortment Stock Coverage = Available Stock Else Stock Coverage = Available Stock / Sales Per Period

Note that this formula can be customized by OneStock teams (on the orchestration configuration) but it has impacts on performance.

Available stock comes from the detailed stock request from the current ruleset.

For items that are not part of the main assortment, as indicated by the assortment boolean set to false, stock coverage equates to the total available stock, considering a default sales per period of 1. This approach simplifies the calculation for non-assorted items, providing a straightforward estimate of their stock coverage.

Importing stock coverages

Stock coverage can be imported both synchronously or asynchronously through API. Learn more in our API portal.