Handling product range complexity A case study on re-engineering demand forecasting
Author: Holmström, Jan
Source: Business Process Management Journal, Volume 4, Number 3, 1998 , pp. 241-258(18)
Publisher: Emerald Group Publishing Limited
Abstract:Studies the problem of forecasting demand on the article level in a competitive consumer goods market. First the conventional approach to forecasting is discussed. A number of weak points of the demand forecasting unit approach are identified. Next, a new approach to forecasting based on applying scaling models, is presented. The method is then tried out and evaluated in the context of a real life business case. Shows that the advantage of the assortment forecasting process is its simplicity and strong means for feedback. Combined with a strong focus on consumer values, the method has potential to produce reliable forecast based on promotion and assortment change inputs.
Document Type: Research Article
Publication date: 1998