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D16OPERATIONS

Inventory demand forecasting

Predicts demand for inventory items at a useful granularity — per SKU, per location, per week or per day depending on the business — and surfaces reorder recommendations: what to buy, how much, when. Accounts for seasonality, trend, promotions, weather, known disruptions. The pattern's value is replacing the rule-of-thumb reordering most SMBs use (which over-stocks slow movers and under-stocks fast movers) with something that learns from actual sales patterns. Output is a recommendation, not an automated purchase: humans approve buying decisions and the pattern improves over time as it sees what's bought and what sells.

WHERE THIS FITS
BUSINESS SHAPES
Product companyDirect-to-consumer
VOLUME THRESHOLD
Below 100 active skus a month, the payback rarely earns the build. Patterns this shape reliably pay back at 2,000+.
REQUIREMENTS · 4 REQUIRED, 2 OPTIONAL

Requirements describe capabilities the pattern needs in your environment, not the vendors you must buy. Any system that fills a requirement satisfies it — that’s what makes the catalog portable across the long tail of SMB tooling.

  1. sales_history_corpus
    REQUIREDREADbatch

    Historical sales data at the granularity that drives forecasting: per SKU, per location, per time period.

    DATA SHAPE
    Sales records with SKU, location, quantity, date, sale price, optionally customer segment.
    COMMONLY FILLED BY
    • sales transactions from the e-commerce platform
    • POS data from retail systems
    • ERP sales orders
    • subscription billing data for recurring products
  2. inventory_state
    REQUIREDREADrequest

    Current and historical inventory positions: what's on hand, what's on order, what's in transit.

    DATA SHAPE
    Per SKU per location: on-hand quantity, allocated quantity, open POs with expected arrival.
    COMMONLY FILLED BY
    • inventory management system
    • ERP inventory module
    • warehouse management system
  3. product_master
    REQUIREDREADrequest

    SKU-level information that drives forecasting and reordering: lead time from supplier, MOQ, shelf life, cost.

    DATA SHAPE
    Per-SKU: supplier, lead time, MOQ, unit cost, ABC classification, lifecycle stage.
    COMMONLY FILLED BY
    • product catalog in ERP
    • purchasing system with supplier and lead-time data
    • master product list maintained by operations
  4. external_signal_inputs
    RECOMMENDEDREADcorpus

    Things that affect demand but aren't visible in historical sales alone: known promotions, weather, holidays, planned events.

    DATA SHAPE
    Calendar of events with date ranges and expected demand multipliers (positive or negative) per SKU group.
    IF MISSING
    Forecasts work well for steady-state demand but miss promo bumps and seasonal anomalies. Accuracy 15-25% worse on event-driven products.
    COMMONLY FILLED BY
    • marketing calendar with planned campaigns
    • annual events the business runs
    • weather feed for weather-sensitive products
  5. recommendation_destination
    REQUIREDWRITEbatch

    Where reorder recommendations land for the buying team to review and act on.

    DATA SHAPE
    Per SKU recommendation: order quantity, suggested order date, forecast supporting it, confidence range, alternative scenarios.
    COMMONLY FILLED BY
    • review queue in the purchasing module
    • weekly recommendation report
    • dashboard with sortable recommendations
  6. buying_outcome_loop
    RECOMMENDEDREADevent

    Feedback on which recommendations the buyer accepted, modified, or rejected. Used to tune forecasts.

    DATA SHAPE
    Per-recommendation: was it acted on, what was actually ordered, what was the buyer's reasoning if different.
    IF MISSING
    Pattern can't learn from buyer expertise. Recommend at least minimal capture of accept/reject.
    COMMONLY FILLED BY
    • accept/reject log captured at recommendation time
    • PO data fed back from the purchasing system
    • weekly buyer feedback meeting captured in notes
RUNTIME FLOW · 8 STEPS
  1. 01
    On a regular cadence (daily or weekly depending on business), pull recent sales history
    sales_history_corpus
  2. 02
    Pull current inventory state and open POs
    inventory_state
  3. 03
    Pull product master for the SKUs being forecasted
    product_master
  4. 04
    Apply external signals (promotions, seasonality, events) to baseline forecasts
    external_signal_inputs
    DECISION Skip if external_signal_inputs not filled; rely on historical pattern only.
  5. 05
    Generate forecast per SKU with uncertainty range
  6. 06
    Calculate reorder recommendations using lead time, MOQ, and target service level
    product_master
  7. 07
    Publish recommendations to the destination, sorted by urgency or value
    recommendation_destination
  8. 08
    Capture buyer outcomes for tuning
    buying_outcome_loop
EMISSIONS · 3

Structured outputs this pattern produces. Other patterns and client systems can subscribe to them, which is how the catalog composes over time.

  • forecast_accuracy_signal

    Forecast vs. actual demand per SKU, the key model quality metric.

    CONSUMED BY
    • model tuning workflows
    • buying team retros
    • operations leadership reviews
  • stockout_and_overstock_signal

    SKUs that ran out or accumulated excess, surfaced with cause analysis.

    CONSUMED BY
    • operations dashboards
    • supplier performance reviews
    • product lifecycle decisions
  • demand_shift_signal

    Structural changes in demand patterns (rising or declining trends), surfaced for product team and merchandising.

    CONSUMED BY
    • category management
    • product portfolio reviews
    • marketing strategy