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February 5, 2018
Whether you realize it or not, virtually every business decision and process is based on a forecast. Anything you plan is generally based on an assumption of something happening in the future which, by definition, is a forecast. Not all forecasts are derived from sophisticated methods, but an educated guess about the future is more valuable for the purposes of planning than no forecast at all.…
February 5, 2018
Demand Planning uses forecasts (link: see what is forecasting) to help highlight opportunities and threats; tell us ahead of time what we expect sales of a product to be; and which markets or channels of distribution are likely to expand or contract. Demand Plans also help in establishing goals and providing alerts about products and markets that require close monitoring. …
Designed to deal with sporadic demand (no seasonality) with a two-step process. The main goal is to provide a good safety stock, resulting in a situation where there is neither over or under stock. This is accomplished by considering two aspects of the data: the demand size and the…
Read on in the Glossary
February 5, 2018
S&OP is a structured monthly process that aligns all functional areas under a unified set of assumptions to enable and coordinate decision making. It integrates demand, supply, operations, and financial planning into one game plan for business. It also links strategic plans to operational plans and attempts to provide a decision-making framework to maximize sales and profit.…
February 5, 2018
“Demand Planners Are Storytellers Who Use Numbers As Their Language”…
February 5, 2018
If something is not measured, it will never improve. To improve forecast performance, we must have metrics in place to measure and monitor them. There will be inherent volatility and variability in what we forecast and if there is any human judgement, there is the possibility of bias in our consensus Demand Plan. If we can measure and recognize the error, we can do something about it. …
Journal of Business Forecasting
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December 13, 2017
1.Mistake: The more sophisticated the model, the better. Correction: The sophisticated models are not necessarily better. Very…
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December 13, 2017
Mention "forecasting," and most people think you're talking about their local meteorologist describing temperature ranges and cold…
December 13, 2017
There are basically three types of models, which are: (1) Time Series (2) Cause-And-Effect (3) Judgmental TIME SERIES MODELS A Time…
December 13, 2017
It is important to know the difference between forecasting software and forecasting systems. Forecasting software…
December 13, 2017
How to Win the Support of Top Management for Forecasting Step 1: Educate top management. Whether management realizes…