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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 670 |
Essay's paper body
Accurate forecasting is critical in this industry because the cost of stock-outs can have a significant negative business impact. Approximately one half of all stock-outs result in lost sales.?
Prior to its move to collaborative planning, forecasting and replenishment (CPFR), the Mobile Device division's sales were highly variable and were not synchronized with customer demand...
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Motorola had visibility only to shipments into retailers' distribution centers, but not shipments from the retailers' distribution centers to the stores. Forecast error was very high, resulting in excessive stock-outs. Motorola recognized that it needed to improve its collaboration with customers and forecast ability in order to compete effectively in its highly price-sensitive market...
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