How MySales Calculates Maximum Stock with Shelf Term

In MySales, the Shelf Term determines how many days of future demand should be held as maximum stock. This ensures efficient inventory control and reduces overstock, particularly for products with limited shelf life.

Default and Override Behavior:

By Default: Shelf Term is taken from the PRODUCTS.SHELF_DAYS field.
Override: Users can set a custom Shelf Term directly in the Replenishment - Item Parameters screen. This manual input takes precedence over the default database value and allows more precise control for specific items.

Calculation Logic:

Calculate daily forecast based on the sum of base, seasonal, and promotional uplifts.
Apply the Shelf Term (e.g., 28 days) to determine how many days of forecasted demand to hold.
Multiply the average daily forecast over that term to compute the Maximum Stock Quantity.

Illustrative Example: 8-Week Scenario

Base Forecast: 10 units/week
Seasonal Uplift: +5 units during Weeks 3-4
Promotional Uplift: +10 units during Weeks 5-6
Shelf Term: 28 days (user-defined

Outcome:

The system calculates the maximum allowable stock each week by summing up forecasted demand over the next 4 weeks. Even with seasonal and promotional peaks, the inventory is capped accordingly, as shown by the dashed line in the chart.