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Supply Chain Glossary - E

Supply Chain Glossary - E

extrapolation

Estimation of the future value of some data series based on past observations. Statistical forecasting is a common example. Syn: projection.

A forecast method on a correlated leading indicator, such as estimating furniture sales based on housing starts. Extrinsic forecasts tend to be more useful for large aggregations, such as total company sales, than for individual product sales. Ant: intrinsic forecast method. See: quantitative forecasting technique.


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