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Setting Advanced Days on Hand Rules

Goal: Understand how Days on Hand rules work in Dynamic Pricing and how inventory-aware buckets influence automated pricing strategies.

Inventory Aware Dashboard

The Inventory Aware tab on the Dynamic Pricing dashboard shows how your SKUs are distributed across four inventory health buckets:

  • Deficient

  • Healthy

  • Excess

  • Overstock

These buckets help the Trellis system decide when to raise, hold, or decrease prices based on supply levels.

Bucket thresholds are fully configurable and can be adjusted in the Configuration tab.

 

How Inventory Buckets Are Calculated

Inventory buckets are determined as a percentage of your target Days on Hand.

  • Default target: 90 Days on Hand

  • Changing the target automatically updates all bucket thresholds

  • This ensures your Pricing strategy always aligns with your inventory objectives

For example, if you change your target from 90 days to 120 days, the cutoff points for each bucket shift accordingly.

 

 

Default Days on Hand Buckets & Strategies

Deficient | Default: 0–50%

Running out of stock soon

  • Applies margin strategy
  • Raises price to slow down velocity and preserve remaining stock

 

Healthy | Default: 50–150%

Balanced inventory levels

  • Applies balanced strategy

  • Optimizes for steady revenue while maintaining stable velocity

Excess | Default: 150–300%

Sell-through rate too low

  • Applies boost volume plan

  • Reduces price moderately to improve sell-through

Overstock | Default: 300%+

Clearance needed to increase sales

  • Applies max volume plan

  • Aggressively lowers price to clear high inventory levels

Managing Days on Hand Rules

You can customize:

  • Your target Days on Hand

  • Each bucket’s minimum and maximum thresholds

  • The pricing strategy Trellis applies within each bucket

These customizations allow you to reflect your own supply chain strategy — whether conservative, aggressive, or seasonal.

 

Example From the Dashboard

The chart visualizes how many SKUs fall into each bucket across selected dates, helping you:

  • Track changes in inventory health

  • Identify categories at risk of stockout

  • Spot overstock issues early

  • Validate whether price strategy is influencing inventory appropriately