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Understanding your AI Replenishment forecast

Figure out how to comprehend the forecast given by AI Replenishment

Written by David Lorbiecke

When AI Replenishment finishes analyzing an SKU, you will see a results screen filled with numbers and recommendations. This article explains what each section means and how to use it to make a confident ordering decision.


The inventory strip

At the top of the results screen, you'll see three live numbers, aggregated across all your locations:

  • On Hand: stock physically in your warehouse(s) right now

  • Available: On Hand minus stock already committed to open sales or manufacturing orders. This is the number to focus on

  • Expected: stock on its way from open purchase or manufacturing orders


The forecast chart

The bar chart shows 13 months of sales history, followed by a 12-month AI forecast. Hover over any bar to see the exact unit figure for that month.

The forecast accounts for seasonality, trend direction, and stockout periods — months when low sales may have been due to stockouts rather than low demand.


AI-derived metrics

Below the chart, you'll find three AI-calculated figures. Hover over any box to see an explanation of how it was calculated.

Name

What it means

Where it comes from

Safety stock

Minimum buffer AI recommends keeping at all times to absorb demand variability.

AI calculation

Reorder point

Inventory level at which you should place a new order. Calculated using near-term forecast demand rather than the 12-month average, so it adjusts for upcoming seasonality.

AI calculation

Lead time

Supplier lead time pulled from the SKU record in Katana.

Katana SKU data

Daily demand

Average units sold per day, based on the AI's 12-month forecast.

AI calculation

Days of stock left

How many days your current Available stock will last at the forecasted daily demand rate.

AI calculation

Tip: The Reorder Point uses near-term forecast demand — not the 12-month average — so it automatically adjusts upward before a busy season and downward in slower periods.

Above the chart, you'll find 2 more AI-calculated figures.

Daily Demand

Average units sold per day, based on the AI's 12-month forecast.

AI calculation

Days of Stock Left

How many days your current Available stock will last at the forecasted daily demand rate.

AI calculation


Methodology & analysis

Click on Methodology & Analysis to open a slide-in panel containing:

  • Forecast: a full narrative explanation of how the forecast or recommendation was reached.

  • Replenishment: a full breakdown of the recommended replenishment that should be engaged for the SKU(s)

  • Prompt: shows the exact prompt used. If you've requested a re-analysis with custom instructions, an amber banner shows your amendment and lets you revert to standard instructions at any time.


Your feedback is invaluable. Let us know your thoughts on this article or anything in Katana you'd like to see improved: [email protected]

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