ABC classification, also known as Pareto analysis, is a useful method for classifying forecast items based on their relative importance to the organization. Many companies adopt different procedures for creating, reviewing and monitoring forecasts based upon an item’s classification. This enables the forecasting team to focus its efforts on those items which have the greatest impact to the organization.
Items are typically categorized as follows:
- A: important high volume items
- B: medium volume items
- C: slow moving items
In the field of business forecasting, is there a disconnect between practitioners and academia? You are invited to share your opinion in a study being conducted at Central Michigan University
Users can now enjoy the variety of improvements available in Forecast Pro Version 9. The features found in the new release–including an enhanced user interface, methodology improvements and the new Custom Component Model–make the software more powerful and easier to use.
Here’s an overview of what’s new in Forecast Pro Unlimited v9:
The educational Webinar How to Leverage Forecasting and a Demand Control Process to Improve Customer Service presented by Business Forecast Systems and Oliver Wight is now available to view on demand.
The newly-published reference book Business Forecasting: Practical Problems and Solutions compiles important and influential literature in the field into a single comprehensive resource for improving your forecasting process.
Error measurement statistics play a critical role in tracking forecast accuracy, monitoring for exceptions, and benchmarking your forecasting process. Interpretation of these statistics can be tricky, particularly when working with low-volume data or when trying to assess accuracy across multiple items (e.g., SKUs, locations, customers, etc.). This installment of Forecasting 101 surveys common error measurement statistics, examines the pros and cons of each and discusses their suitability under a variety of circumstances.
The 34th International Symposium on Forecasting (ISF)
Rotterdam, The Netherlands
June 29 – July 2, 2014
Early bird deadline: May 31, 2014
Among the many business issues to be tackled at the 34th International Symposium on Forecasting (ISF) in Rotterdam is integrating academic research into practical application. Sponsored annually by the International Institute of Forecasters (IIF), the conference is recognized as the premier international event for presenting important forecasting research. At the ISF, the world’s top forecasting professionals and researchers, presenters, and participants learn from each other and discuss cutting-edge forecasting trends.
Encompassing a broad range of forecasting sectors, this year’s conference includes sessions on forecasting for climate predictability, recession in real time, financial market volatility, forecast optimality, and a history of prediction science. Register by May 31 to take advantage of early bird registration discounts.
The majority of Forecast Pro users rely on Expert Selection, the software’s built-in system which automatically creates forecasts. This approach works quite well in most cases; however, you must keep in mind that Expert Selection views your data as a series of numbers and takes a purely statistical approach to generating the forecasts. At times your knowledge of your products and future events may lead you to either adjust the Expert Selection forecast judgmentally or reject it completely and use an alternative forecasting method. Let’s examine several cases where overriding the Expert Selection forecast should be considered.