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How are lost sales determined?

How are lost sales determined?

Using proprietary demand forecast technology, we look at thousands of data points to do a predictive analysis of sales you lost in the past due to out-of-stock items. Based on this data, we conduct a predictive analysis of the future and are able to tell you what lost sales you may have in the future (due to out-of-stock items), if you do not replenish as estimated by past demand. For example: If demand forecast data indicates that you sold 10 units on July 18, 2017 but you had 0 units in stock on July 18, 2018 – then 10 units is considered ‘lost sales’ – since the demand existed but you did not have the inventory to make the sale.