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…
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…
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…
How to Analyse Variations in Forecast vs. Actuals to Improve Forecasts. The job of demand planners is not over by generating forecast numbers. In order to assist the planning process team and correct the forecast it is best to have exception reports in place. It is important to find the anomalies in the data and create…
