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No Demand and New Item Definitions

Updated over 2 months ago

Overview

The "New Item" and "No Demand" classifications help categorize items based on their creation date and sales history. Understanding these definitions ensures accurate inventory assessment and demand planning, enabling businesses to make more informed decisions.

Additionally, users can now add two optional columns to their view for deeper insights:

  • Created At: Displays when the item was created in your ERP.

  • First Usage Date: Shows when the item had its first usage.

These columns provide further visibility into an item's lifecycle and demand trends.

New Item Classification: An item is classified as "New Item" if:

  • The most recent between its creation and first usage date is within 6 complete months.

This means that newly added products or recently introduced stock will fall under this category, even if they have not yet been sold.

No Demand Classification: An item is classified as "No Demand" if:

  • It has had no demand (no sales) in the last 12 months.

Items that were previously selling but have not seen any demand in the last year will be included in this category.

Examples of Classification

Event

Date

Pattern

Item created in ERP

Feb 2, 2023

New

First sale

April 4, 2023

New

Last sale

May 10, 2023

New

Time passes

Dec 1, 2023

A new demand pattern based on usage, e.g. Sparse

Time passes

Jun 1, 2024

No Demand

Event

Date

Pattern

Item created in ERP

Apr 12, 2022

New

No sales happen for awhile

New

Moved to no demand

November 1, 2022

No Demand

First sale

Nov 11, 2022

New (as soon as next forecast run)

Continuing sales regularly

Time passes

Jun 1, 2023

A demand pattern other than new or No Demand

Event

Date

Pattern

Item created in ERP

Aug 10, 2022

New

First sale

August 21, 2022

New

Continuing sales regularly

Time passes

Mar 1, 2023

A demand pattern other than new or No Demand

Why This Matters:

  • The updated classification ensures more accurate tracking of newly introduced items.

  • Helps businesses identify items with stagnant demand more effectively.

  • Supports better inventory and procurement decision-making.

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