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: safety stock
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 Inventory managementTags EOQ, forecast accuracy, forecast error, Price Hedge, quantity discount, safety stock56 Views services
If all works well, then it is a perfect world. You carry just the right amount of inventory to service your customers at 99% and get away with very minimal …