There is value in reducing forecast error for sure - the evidence comes from the fact that year-after-year companies continue to hire more demand planners and invest millions of dollars in putting together processes and software packages. Now to dissect this, let us look at the Service-Cost Balance model that we preach in our workshops. Now if we want to quantify the benefits from forecast accuracy, it is difficult to quantify the first item. What is our lost sales? What …
Tag: Demand Forecasting
In Demand PlanningTags data analysis, Demand Forecasting, demand modeling, demand planning, demand planning training, inventory setting, nulls in forecasting, safety stock, zeroes and nulls51 Views services
Generally Nulls can never be treated as zeroes. They are different things. Nulls mean nothing, the absence of anything. Nulls mean no data or no observation. If you average a …
In S & OPTags Constrained Demand, Demand Forecasting, inventory deployment, Rough Cut capacity Plan, S&OP, Supply Chain constraints, supply chain forecast38 Views services
We discussed the S&OP Process in our two-day tutorial. There was a question about if there is a list of steps in implementing such a a process. Here is my …
In Demand Consensus, S & OPTags Demand Forecasting, inventory deployment, S&OP, supply chain forecast43 Views services
Supply chains ignore the demand forecast at their own peril. They need to leverage the forecasting responsibility of the various functions and drive a holistic process to create a demand …