Having access to an accurate forecast is very beneficial for businesses. If used correctly, it can provide better margins, increase market shares, and many other positive results. At a more tactical level, it can help reduce the costs associated with meeting the customer demand and make the supply chain more efficient.
Insight from Applied Statisticians for Forecasting: Is It Worth the Effort and the Mirage of Random Variation?
In this blog, we will illustrate through an example of these potential pitfalls (unanchored, random variation, and narrow metrics) and potential negative impact on a firm.