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📦 Inventory Risk & Demand Optimization Analysis

A Tableau-based analysis identifying stockout risks, overstock conditions, and lost sales to improve inventory decision-making.


📖 Overview

This project analyzes inventory and demand data to identify supply chain inefficiencies, including stockout risks, overstock conditions, and lost sales. The goal is to provide data-driven insights that support better inventory planning, reduce risk, and improve operational efficiency.


🚀 Project Highlights

  • Built an interactive Tableau dashboard to analyze inventory risk and demand patterns
  • Developed KPIs including Stockout Rate, Overstock Rate, and Estimated Lost Sales
  • Identified inventory imbalances across products and warehouses
  • Delivered actionable recommendations to reduce lost sales and improve stock allocation

📊 Dashboard

Inventory Dashboard

Dashboard Features:

  • KPI summary of inventory performance
  • Distribution of inventory risk categories
  • Lost sales analysis by product and warehouse
  • Demand vs stock comparison for decision-making

Tableau Link


🎯 Business Problem

Organizations often struggle to balance inventory levels with fluctuating demand. Poor inventory management can result in:

  • Stockouts → Lost revenue and missed customer demand
  • Overstock → Increased holding costs and tied-up capital
  • Inefficient distribution → Imbalance across warehouses

This project aims to identify these issues and provide actionable recommendations.


💼 Why This Matters

Effective inventory management directly impacts revenue and cost. This project demonstrates how data analytics can be used to:

  • Reduce lost sales from stockouts
  • Minimize excess inventory and holding costs
  • Improve supply chain efficiency

🛠 Tools & Technologies

  • Tableau – Data visualization and dashboard development
  • Excel – Data preparation and structuring
  • Data modeling concepts

📊 Key Metrics

  • Stockout Rate – Percentage of products at risk of stockout
  • Overstock Rate – Percentage of excess inventory
  • Estimated Lost Sales – Revenue impact from stock shortages

🔧 Methodology

  • Joined inventory and demand datasets using an inner join in Tableau
  • Created calculated fields for:
    • Stockout Rate
    • Overstock Rate
    • Estimated Lost Sales
  • Developed an Inventory Status classification:
    • Stockout Risk
    • Overstock
    • Balanced
  • Built interactive dashboard components:
    • KPI cards
    • Product-level analysis
    • Warehouse-level analysis
    • Demand vs Stock scatter plot
  • Applied filters for dynamic exploration (warehouse, category)

📈 Key Insights

  • A significant portion of products fall into the stockout risk category, contributing to measurable lost sales and highlighting gaps in inventory planning
  • Overstock conditions exist across multiple products, indicating inefficient inventory allocation and potential holding costs
  • Lost sales are concentrated in specific products and warehouses, suggesting opportunities for redistribution and improved supply chain coordination
  • Demand and stock levels are misaligned, with high-demand products understocked and low-demand products overstocked

💡 Business Impact

  • Stockout conditions lead directly to revenue loss
  • Overstock increases storage costs and reduces capital efficiency
  • Warehouse-level imbalances reduce operational effectiveness
  • Improved inventory planning can significantly enhance profitability

✅ Recommendations

  • Implement demand-driven inventory planning
  • Rebalance stock across warehouses based on demand patterns
  • Introduce automated alerts for stockout and overstock conditions
  • Continuously monitor KPIs to improve decision-making

⚠️ Limitations & Assumptions

  • Estimated Lost Sales is an analytical estimate, not actual recorded revenue
  • Inventory thresholds are rule-based and may vary by business context
  • Supplier lead times and demand variability were not included
  • Analysis is based on available dataset and assumptions

📚 Data Dictionary

Field Name Description
product_id Unique product identifier
warehouse Warehouse location
stock_level Current inventory on hand
daily_demand Average daily demand
reorder_point Minimum threshold before reorder

📐 Metric Definitions

  • Stockout Rate: Percentage of products below reorder point
  • Overstock Rate: Percentage of products exceeding demand thresholds
  • Estimated Lost Sales: Revenue impact from unmet demand

🚀 Project Outcome

This project demonstrates how data analytics can be used to identify operational inefficiencies, reduce inventory risk, and support data-driven decision-making in supply chain management.


🔗 Connect With Me


👤 Author

Abodunrin Oketade
Aspiring Data Analyst | Operations & Supply Chain Analytics Aspiring Data Analyst | Operations & Supply Chain Background

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Tableau dashboard and business analysis of stockout risk, overstock, and lost sales to improve inventory planning and warehouse allocation.

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