Excellence in Forecasting Blog

Optimize Inventory planning parameters,improve service levels and increase revenue

5 Demand Planning Tips for Calculating Forecast Uncertainty

5 Demand Planning Tips for Calculating Forecast Uncertainty

Those who produce forecasts owe it to those who consume forecasts, and to themselves, to be aware of the uncertainty in their forecasts. This note is about how to estimate forecast uncertainty and use the estimates in your demand planning process. We focus on forecasts made in support of demand planning as well as forecasts inherent in optimizing inventory policies involving reorder points, safety stocks, and min/max levels.

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Reveal Your Real Inventory Planning and Forecasting Policy by Answering These 10 Questions

Reveal Your Real Inventory Planning and Forecasting Policy by Answering These 10 Questions

In this blog, we review 10 specific questions you can ask to uncover what’s really happening with the inventory planning and demand forecasting policy at your company. We detail the typical answers provided when a forecasting/inventory planning policy doesn’t really exist, explain how to interpret these answers, and offer some clear advice on what to do about it.

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Recent Posts

  • Managing Inventory amid Regime ChangeManaging Inventory amid Regime Change
    If you hear the phrase “regime change” on the news, you immediately think of some fraught geopolitical event. Statisticians use the phrase differently, in a way that has high relevance for demand planning and inventory optimization. This blog is about “regime change” in the statistical sense, meaning a major change in the character of the demand for an inventory item. […]
  • CONNECT 2022 EPICOR PROPHET 21 INVNETORY OPTIMIZATION P21Smart Software Launches Smart Inventory Optimization and Demand Planning for Prophet 21
    Smart Software, a leader in enterprise demand forecasting, and inventory optimization solutions announces the release of Smart Inventory Planning and Optimization for Prophet 21 (P21). […]