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## What is a Demand-driven Supply Chain?

A Demand-driven Supply Chain (DDSC) is defined as a supply chain management method focused on building supply chains in response to demand signals. The main force of DDSC is that it is driven by customer demand. In comparison with the traditional supply chain, DDSC uses the pull (Demand pull) technique. It gives the market opportunities to share more information and to collaborate with others in the supply chain.

By |2019-04-13T23:09:06-04:00April 19th, 2018|Demand Planning, Supply Chain|0 Comments

## What is Statistical Forecasting? A snowfall-based explanation

During the last storm, I was watching the snow plows go to work and thinking about the amount of planning that must go into the resources needed to deal with the snow - what with salt, and plows needed. That must be a whole supply chain.

By |2019-04-13T23:09:07-04:00April 13th, 2018|Forecasting|0 Comments

## Do Returns Impact My Forecast Error Calculation Negatively?

Should you factor returns in your forecast error calculation? In this article, we’ll use a sample data set, to demonstrate if you should consider returns when calculating your forecast errors.

By |2019-04-13T23:09:07-04:00April 6th, 2018|Forecasting|2 Comments

## Should I Use Order Lead Time for Demand Segmentation?

To set the foundation for this discussion, let us first look at the definition of order lead time. Order lead time is the time gap between the date when a customer places an order and when they expect to receive the product. Typically, in a B2B environment, the expectation is that there will be some gap between the two dates, and in many cases, this gap can be negotiated.

By |2019-04-13T23:09:08-04:00March 27th, 2018|Demand Planning, Segmentation|0 Comments

## Can Demand Segmentation Improve Your Statistical Forecast?

Imagine a demand planner working with 10,000 unique combinations. One of the not so envious tasks for this person would be to generate statistical forecast for all these combinations. These days, the statistical forecasting tools available on the market can forecast these combinations using a list of forecasting methods and figure out which method works best for a particular combination.

By |2019-04-13T23:09:08-04:00March 22nd, 2018|Demand Planning|0 Comments

## How Does My Open Order History Impact My Sales Prediction?

An open order is defined as an order placed by the customer which is under process and is yet to be fulfilled by the supplier. For effective analysis, open order data needs to be recorded daily in an ERP system. A minimum of twelve to eighteen months of open order history is required for your sales forecasting analysis and fine-tuning process. A shorter period could render unreliable and skew the results of your data analysis.

By |2019-04-13T23:09:09-04:00March 2nd, 2018|Demand Planning, Forecasting|0 Comments

## How to Adjust Your Planning to Meet Changing Sales Patterns

In an ideal world, demand and supply would be steady and predictable, resulting in optimal capacity utilization and no back orders or missed customer orders. However, in the actual supply chain world variations in actual sales vs. projected sales result in lower forecast accuracy, and either overstocking or stock out situations.

By |2019-04-13T23:09:09-04:00February 26th, 2018|Demand Planning|0 Comments

## 6 Ways You Can Improve Forecast Accuracy with Demand Sensing

Demand sensing helps us identify the actual customer order trends and helps us improve the near-term forecast. Strategic actions like demand shaping for knowingly increasing or decreasing the demand for the product can be undertaken by sensing demand signals.

By |2019-04-13T23:09:10-04:00January 25th, 2018|Demand Planning, Demand Sensing, Forecasting|0 Comments

## We compared the Accuracy of 4 Different Demand Forecasting Methods; Here’s What We Found.

Over the past few months, we’ve been running simulation tests on different demand forecasting methods: Winter’s additive & multiplicative, seasonal and robust seasonal. Then, we used MAPE to determine the forecast accuracy for each method. Here’s what we found.

By |2019-04-13T23:09:21-04:00July 27th, 2017|Demand Planning, Forecasting, What-if Wednesday|1 Comment

## What-if Wednesday: Seasonal Model Forecasting with Seasonal Methods

Seasonal method is a regression method that fits a linear trend along with sine and cosine curves. These sine and cosine portions of the regression can fit any seasonal deviations from the linear trend. Robust seasonal method also fits a trend along with sine and cosine curves, however this method uses linear programming to fit a seasonal series in a way that compared to the regular seasonal method is less likely to be thrown off by noisy values that depart from the trend or seasonality.

By |2019-04-13T23:09:23-04:00July 5th, 2017|Forecasting|0 Comments