Systems and methods for inventory estimation

A computer-implemented system for target inventory estimation of a geographical region, the system comprising:

• at least one memory storing instructions;
• and
• at least one processor configured to execute the instructions to perform operations comprising:
• receive an item identifier associated with an item for inventory estimation as an input to the system for target inventory estimation for the item in a geographical region;
• access a demand share estimate of the item associated with the received item identifier in the geographical region, a mean of the demand share estimate, and a variance of the demand share estimate;
• determine overall demand forecast of the item associated with the received item identifier, wherein the overall demand forecast of the item is based on order data associated with the item;
• calculate mean of the overall demand forecast and variance of the overall demand forecast, wherein the mean and variance of the overall demand forecast of the item are based on previously determined overall demand forecast of the item;
• determine a service level associated with the geographical region, wherein the service level of the geographical region is based on availability of one or more items at the geographical region to satisfy orders for the one or more items;
• generate target inventory estimation of the item associated with the received item identifier in the geographical region based on the mean and variance of the overall demand forecast of the item, and the mean and variance of the demand share estimate of the item in the geographical region, wherein the generated target inventory estimation meets the service level of the geographical region;
• and
• respond to the received item identifier with the generated target inventory estimation.