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

Yield Management

A pricing strategy used to maximize revenue by varying prices based on demand and inventory levels.

Unplanned Out-of-Stocks

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

Forward Buying

Refers to the purchase of goods in quantities greater than immediately needed, with the intent to