The Fundamentals of Demand Planning Design

Whatever tool being used (and there are thousands of them!) the starting point should be a review of the fundamentals of system design. The following factors determine the Forecasting Approach and Solution for any Company.

  • Company Structure
  • Industry & Market
  • IT Architecture
  • Dimensions, Levels & Timeframes
  • Data Streams
  • Hierarchies

 

Is Forecasting Art or Science?

A Balanced Approach

It is easy to overindulge / ignore either approach. The trick is to obtain the best balance of planning strategy for your supply chain. First and foremost create a solid foundation (science) and from a decent baseline create better numbers using planner skill and judgement (art).

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