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Contact Support →Understanding Velocity Calculations
Stock Sentry uses sales velocity to predict stockouts. This guide explains the calculation and configuration.
What is Sales Velocity?
Sales velocity is the average units sold per day for a product variant. It forms the foundation of Stock Sentry's predictions.
Formula: Daily Velocity = Total Units Sold / Number of Days
Example: 140 units in 14 days = 10 units/day. With 50 units in stock, stockout predicted in 5 days.
Lookback Period
The lookback period determines how many days of sales history to analyze:
| Period | Best For | Trade-off |
|---|---|---|
| 7 days | Trending products | More responsive, less stable |
| 14 days | Most products (default) | Balanced approach |
| 30 days | Seasonal products | Very stable, slower to react |
| 90 days | Historical planning | Best for seasonal cycles |
To change: Settings > Velocity Calculation Settings > Select period > Save
Seasonal Adjustments
When enabled, Stock Sentry applies monthly multipliers to velocity:
Adjusted Velocity = Base Velocity x Seasonal Multiplier
Example: 10 units/day x 2.5 December multiplier = 25 units/day adjusted velocity.
See Seasonal Patterns for details.
Prediction Accuracy
Improves with: Consistent sales, longer history, regular restocking
Decreases with: Promotions, seasonal variance, new products, irregular sales
Confidence Levels
- High (80%+): 30+ sales, low variation, regular pattern
- Medium (50-80%): 10-30 sales, some variability
- Low (<50%): <10 sales, irregular pattern
Edge Cases
- Zero velocity: No recent sales - product marked accordingly
- Insufficient data: <3 sales - flagged as unreliable
- Negative inventory: Triggers Critical alert immediately
Best Practices
- Match lookback to your sales cycle
- Act quickly on high-confidence alerts
- Increase thresholds before promotions
- Review velocity trends in dashboard
Related: Alert Thresholds | Getting Started | FAQ