No matter where you place the forecasting function, you will have a bias in forecasts unless you create an independent department. Production people tend to over-forecast because it gives them fewer headaches resulting from out of stocks. But if they are evaluated on the basis of inventory, they would prefer under-forecasts. Salespeople have a...
I recently came across this white paper with the above title, written by a company called AGENTRICS, which I found very strange and contradictory. Here are four reasons why: 1. The paper claims since we cannot forecast (meaning 100% accurately), forecasting is unnecessary. The practice of forecasting has caused and will continue to cause...
Statistical models are important, but they are not the be all and end all of forecasting. Forecasts can be further improved if: 1) Data is properly analyzed and treated before using a model 2) Have a process in place for obtaining data/information/feedback from various stakeholders, both within and outside the organization 3) Have a...