Predict Tomorrow’s Demand Utilizing Yesterday’s Knowledge
Whereas AI fashions have taken the highlight, conventional statistical fashions stay extremely worthwhile instruments for demand forecasting
Whats up Medium readers!
Right now, we’ll dive into forecasting strategies utilized to demand planning, a discipline that I’m extremely invested in attributable to my provide chain background and keenness for information science. Not too long ago, I’ve been studying up on this matter, revisiting books and articles on demand forecasting to offer you some recent insights.
To kick issues off, let me share a thought-provoking quote by British statistician George E. P. Field:
“All fashions are mistaken, however some are helpful.”
As you replicate on this quote, you may surprise: why even trouble forecasting the long run if no mannequin can ever be fully correct? Consider it like climate forecasting: it helps us plan forward. Ought to I convey an umbrella tomorrow? Ought to I placed on sunscreen? Ought to I take shelter from a hurricane? Forecasts, whereas imperfect, information us in making higher selections.
In demand planning, it’s no completely different. Demand planners and different firm stakeholders use forecasts to anticipate future wants and alter…
