Combo Forecasting Use Cases
These are some best-practice scenarios for using Combo Forecasting. If you haven’t watched the Combo Forecasting tutorial yet, please do so first to understand how the tool works. This guide focuses on when and why to use Combo Forecasting, not how to set it up.
Also reference the tutorial on Different Velocity Types so you understand how each one works, as you will need to use multiple velocity types when utilizing Combo Forecasting.
High Seasonality
For seasonal products, we typically recommend using Last Year’s Sales since they already reflect seasonal trends. However, if current sales are outpacing last year’s performance and the rest of the season is uncertain, Combo Forecasting can help balance current trends with past seasonality.
For example, you can use a 30-day average as your default velocity to capture your current sales rate, and then use Combo Forecasting to override that velocity with last year’s sales during peak months. For a swimsuit product, that might mean using last year’s sales only for June and July, then reverting to your 30-day average afterward.
Default Velocity: 30-day Adjusted Velocity
Combo Override: Last Year’s Sales
Long-Term Stockouts or Listing Suspensions
If a product experienced a long stockout or suspension (one week or longer), Combo Forecasting can “fill in the gaps” that the standard stockout tool can’t handle. For instance, if you usually rely on last year’s sales as your default velocity but had no data between May 1–31 due to a suspension, you can override that period with a manual velocity or Demand Plan to maintain accurate forecasting.
Default Velocity: Last Year’s Sales
Combo Override: Manual Velocity or Demand Plan
New Product Launches
Launching a new product means you have little to no historical data. Previously, you’d rely entirely on manual velocity or a demand plan for projections. With Combo Forecasting, you can use a demand plan for the first launch period (e.g., the first 10 weeks), then transition to an adjusted velocity using a 15-day average once you’ve built sufficient sales history.
Note: For longer-term launch forecasts, set up a demand plan for extended periods, then manually switch to an adjusted velocity (15 or 30 days) when ready.
Default Velocity: Demand Plan (first 10 weeks)
Combo Override: Adjusted Velocity, transitioning to Last Year’s Sales once adequate history is available.