Weeks of Stock, sometimes also referred to as Weeks of Cover (WoC), is the parameter we use to determine the ideal stock for a product.
Instead of using Min / Max parameters, the ideal stock is based on a sales forecast that includes all stock activities (incoming stock, ordered stock, stock on hand), as well as any sales activity in the future.
Defining the Weeks of Stock
The ‘Weeks of Stock’ parameter determines how many weeks of safety stock you want to keep for each product. In other words, it determines how many weeks of sales you want to keep on hand, before you re-order.
By default, this parameter is set to 6 weeks. If you don’t change this parameter, it means all you products will keep 6 weeks of stock in your inventory to make sure you can cover 6 weeks of sale.
The Weeks of Stock can be managed on two levels:
1.) Default (managed in Forecast Settings)
In the Forecast Settings, you can change the default settings for Weeks of Stock. If no value is entered for individual products, this value is used for all products in the store.
2.) Weeks of Stock by Product
You can edit and change the Weeks of Stock on a product level directly in the Product Management pages;
The Weeks of Stock by product take precedent. If no value is entered, the calculation will fall back on the default value.