Category: Uncategorized

Outsourced Forecasting – FAQ

Where are the Real Opportunities for Forecast Improvement? The key opportunities for enhancing forecast accuracy and reliability with statistical forecasting applications lies more in a mastery of the forecasting system versus using domain expertise to the machine produced forecasting end result. In fact, most companies have no idea how much their planners are increasing or

How Much Data Is Good For Forecasting?

When a demand planner thinks about Forecasting the first thing that comes to mind is data. It is a common question by the planners about ‘how much data is required for forecasting’. In this article, we are going to discuss about the amount of data required for the reliable Forecasting. First let us burst the

Does your planning software have a genie ?

The function of planning and forecasting goes back a long way and has mentions as an ancient practice in religious and historical texts. Like all other phenomena, the function deals with development and advancement, whether theoretical or technological, in a cyclic manner – Realise, Reconstruct, Refresh and Repeat.  When it comes to modelling times series sales

Forecasting Intermittent Demand – A Proposal

Arguably, SKUs with Intermittent Demand are some of the most challenging to forecast with any modicum of accuracy.  We generally define Intermittent Demand as follows: Intermittent series has demand appear at random with many time periods showing no demand at all. The prominent characteristics of such series are: The time-series contains embedded zeroes The time-series

The 7 Habits of Highly Effective Forecasters

As a consequence of being in a forecasting consultancy we have picked up an in-depth understanding of the planning and forecasting functions of the firms. One conclusion we have drawn is that irrespective of distribution, dimension or division, most firms have similar struggles from similar function weaknesses. What we also noticed is that for demand

Romancing the Regression Equation

Regression is one of the highly spoken about quantitiative methods in forecasting. It is a statistical method of identifying relationship between two or more variables (one dependent variable and others independent variables). If these two variables have a strong relationship then we leverage this relationship to use the knowledge of the independent variable to predict