Buy custom IMPORTANCE OF FORECASTING AND CONTROLLING ERRORS
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| Topic: |
Science
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| Number of pages / Number of words: |
3 / 719 |
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It demands being more resourceful in using demand indicators to improve forecasts and having a system for tracking forecasting errors. In his article, Fisher gives the example of the ski-wear company, Sport Obermeyer, where the company faced costly forecasting errors despite the improvements in their system like reducing processing times for orders by a computerized system, shortening lead times by pre-positioning raw materials to a closer location, and air freight to expedite delivery...
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He declares that after applying the new concept of accurate response, this ski-wear company increased profits by 75%. The company convened a panel of experts to make independent forecasts and used the variance in different predictions to measure the accuracy of the forecasts where past demand data is not available...
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