System and methods for forecasting inventory

A method for forecasting inventory, said method comprising:

• calculating, by a processor (202), a demand forecast data based on a forecast algorithm;
• correcting, by the processor (202), the calculated demand forecast data based on one or more exogenous variables;
• categorizing, by the processor (202), the inventory into different buckets at a product batch level;
• and
• forecasting, by the processor (202), a warehouse level inventory demand for a predefined time based on the categorization.

A user equipment (UE) (104) for forecasting inventory, comprising:

• one or more processors;
• and
• a memory operatively coupled to the one or more processors, wherein the memory comprises processor-executable instructions, which on execution, cause the one or more processors to:
• transmit a pre-processed data comprising at least one of sales data, product data, daily inventory data, and batch level inventory data to an optimization system;
• and
• receive an alert from the optimization system based on a categorization performed by the optimization system on the transmitted pre-processed data.