Velocity Analysis

Velocity Analysis

A method of analyzing sales data to identify products with high sales velocity. Velocity analysis helps retailers and manufacturers prioritize inventory replenishment, allocate shelf space, and develop pricing and promotion strategies based on demand patterns.

Related Terms

Bulk Stacking

Optimal way to story inventory in a vertical manner when there is large quantities or excess

Unplanned Out-of-Stocks

Instances where a product is unexpectedly unavailable for purchase, often resulting in lost sales and dissatisfied