Featured Content:

White Paper: What is True Demand?
By Mark Chockalingam Ph.D

An important building block to creating an accurate demand plan is the accuracy of your demand history. Since the purpose is to forecast all unconstrained customer demand in the future, we need to define and collect a history of true demand.

Since demand itself is unobservable, we use a proxy such as history of shipments or customer orders to measure demand. In this paper, we examine the demand components of observed shipment history and customer order stream. We illustrate the arguments in favor and against using these measures as a proxy for true demand and suggest some methods to address the corrections.

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White Paper: Forecast Accuracy
By Mark Chockalingam Ph.D

Accurate and timely demand plans are a vital component of an effective supply chain. Forecast accuracy at the primitive SKU level is critical for proper allocation of resources. Inaccurate demand forecasts often would result in supply imbalances when it comes to meeting customer demand. In this presentation, we will discuss the process of evaluating forecast accuracy, the pros and cons of different accuracy metrics, and the time-lag with which accuracy should be measured. A method to identify and track forecast bias will also be discussed.

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