How “Forecastable” is Your Data? It’s Complex Anyway You Look at It

These “key tools” balance a need for simple with a need to handle the complexity of SCM – following the IBM adage – complexity exists whether you ignore it or not, best not to ignore it.

Using Coefficient of Variation to Drive Safety Stock Related Decisions

In a previous blog post, we discussed how a high or low value of Coefficient of Variation (CV) impacts the first or second term of safety stock. Today we decided to put this to the test using real customer data - here we will discuss our findings.

Illusively Complex – Effective Approach to Mixing Judgment and Statistics in Forecasting

In 1994, the IBM Micro-electronics Division, itself a fortune 100 size firm, put in place a major effort to create best in class supply chain planning process and software including demand planning(DM), central planning, available to promise, et al. I was fortunate to be an original member and had the opportunity to work extensively on

By |2024-02-21T14:20:42-05:00October 13th, 2015|Demand Planning|

Using Coefficient of Variation as a Guide for Safety Stocks

In one of my previous posts, I wrote about using coefficient of variation (CV) as a predictor of forecastability. In this post, I will talk about how it can be used to indicate a sensitivity of lead time towards the safety stock calculations. To quickly remind the reader first: The formula for CV = StdDev

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