Increasing Demand to Compensate for Lost Sales

Enable the lost sales calculation by using the Lost Sale field on the Forecast Parameters window. We recommend setting the parameter according to item demand, using one of the following:

A higher percentage (80) to increase item demand and compensate for lost sales during out-of-stock periods. This increase guards against future lost sales on fast-moving items.
A lower percentage (20) to limit the increase in item demand of slow-moving items during out-of-stock periods. This limitation prevents over-purchasing and stock surplus.
Zero (0) where you cannot guarantee inventory accuracy for the product or you have less than six months of product history.

Note: The following procedure is a manual process for a single product. Use the Mass Load program to enter inventory parameters to groups of products.

To assign a lost sales percentage to a product:

From the Maintenance menu, select Product to display the Product Maintenance window.
Display a product record.
From the Inventory menu, select Primary Inventory Maintenance to display the Primary Inventory Maintenance dialog box.
From the Edit menu, select Forecast Parameters to display the Product Forecast Parameters dialog box.
From the File menu, select Hierarchy to display the Product Forecast Parameters dialog box.
In the Enter hierarchy branch field, enter the branch or territory ID.
Click OK to display forecast parameters for the selected branch in the Product Forecast Parameters dialog box.
In the Lost Sales column, enter a lost sale percentage for the branch or territories.
Enter other forecast parameters, as needed.
Save the information and exit the dialog box.

Changes take effect when you exit Product Maintenance.