Demand planning and forecasting is a process which, because of its intrinsic focus on “error”, too often invites misguided efforts at producing perfection. Like the alchemists’ quest for gold, the goal is illusory and may cost more than any benefit it yields. Consider that the result of demand planning is only profitable to the... »
Eighteen months ago I decided I would put my job on the line if that is what would take to improve our planning processes and implement S&OP. Due to the changes required, some implementation issues, and my own actions; I must admit that I came very close to that line. Fortunately, I survived and... »
We can do a good job of predicting this, but the question is “Can we do better?”. The Statistician W. Edwards Deming showed Japan’s auto industry the importance of increasing quality and HP aims to do the same. How do you staff a calling center optimally so that you balance the phones getting answered... »
Monday, 8:05am: your boss calls you into his office and says, “I just got back from the Supply Chain Forecasting & Planning Conference. We need to start a S&OP process!” He hands you a 9 inch thick textbook and barks “get it going!!.” So you dutifully read the textbook, gather your team, collate the... »
If the answer to this question appears to be obvious, please read on! There’s been lots of discussion about how forecasting is done, but much less about what is forecasted. Now, this is an important issue for all forecasters, but none more so than Supply Chain forecasters. Let’s suppose you’re using a particular forecasting... »
Below details Questions & Answers from IBF’s Webinar “What Management Must Know About Forecasting.” If you missed it, no worries. You can view it complimentary by clicking HERE. 1. If a product is not forecastable, what’s the most appropriate step to move the product to become forecastable? Answer: The most effective way to improve... »