Demand Forecasting Basics — Assessment

For tax Forecasting is decorative Reacting lags real demand by the supplier lead time Reacting is always faster

Counts stock Smooths random spikes and dips into a baseline Raises prices Hides sales

Seasonality and trend Tax and payroll Colour and size Supplier and branch

The forecast runs low and you are stocking out Nothing You have overstock The forecast is perfect

To raise tax It is pointless Unchecked forecasts drift into overstock or stockouts To slow buying