Overview - Dynamic Item Velocity Calculation

The velocity code of a product is a measure of its movement in the supply chain. Products are classified as having a velocity code A, B, or C. Velocity code A indicates fast moving items and C indicates slow moving items. The speed at which an item moves varies by regions, seasons, and other parameters. For example, during winter, snow jackets can sell more on the east coast of the US than on the west coast.

Presently, warehouses manually change the velocity codes for items based on seasonality, recent past, or forecast for the near future. Dynamic Item Velocity Calculation enables the system to update the velocity codes for items automatically, without much manual intervention.

The fast moving items are typically stored in active locations in a warehouse to reduce the picking cost and time and improve the picking efficiency. Therefore, warehouses would prefer to slot active areas based on seasonal data.