Whitepaper: Creating a bull whipped supply chain?

A case study on planning techniques

No matter what business you are in, there is always a need for future estimates in order to plan. However, at a more finite level, it may be critical to take a closer examination of how precision and accuracy of a forecast strategy affect other parts of your planning process. This perspective reveals observations of how different forecasting strategies affect simulated safety stock levels and replenishments. By examining how your own planning system responds to similar tests, you might expose some deficiencies that are limiting your ability of meeting inventory objectives.

In most areas of business, the forecast carries a common expectation concerning revenue growth. It’s easy to see why precision is relevant in such case, however, for the purpose of supply planning, where cost based decisions are being made, the need for absolute precision may be slightly divergent.

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