Are the forecasting process and demand variability integrated with a service-oriented inventory and/or capacity deployment strategy?
Are you in one of those companies where some people say, “We can’t forecast this business…” and, therefore, the responsibility is passed off to someone else? Whether this is the case or not, if you maintain any inventory and/or capacity in anticipation of future orders, you are forecasting. In many companies, the wrong persons with the wrong tools are doing the forecast and deploying inventory and/or capacity in the wrong way. As a result, there is probably too much inventory, too little service, and a production operation that’s frequently driven into chaos from the demand and supply imbalance in the system. Fortunately, there is hope for those long frustrated by the forecasting dilemma. Any business can be forecasted. The degree of effectiveness is a direct result of how well the forecasting process is developed and then supported by appropriate policies, tools, techniques and measurements. 5) Do you have a comprehensive and effective sales and operations planning (SOP) process tha