Sales velocity is defined as the total number of units sold per day over a defined period of time. The formula is depicted in the image below:
For example, if a product has 35 units sales over the last 7 days, the sales velocity over that period of time is: 35÷7 = 5.0.
Sales Velocity is an available column in both the View Stock and View Products screens. It is also displayed in the Analytics product stock dashboard and can be derived out of Finale's reporting engine.
Demand Velocity and Sales Velocity are calculated using the same formula - with one key difference. The total number of units sold under Demand Velocity is based on an item selling as both a standalone product as well as a BOM component product.
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