Supply Chain Glossary - R

Supply Chain Glossary - R

running sum of forecast errors

The arithmetic sum of the differences between actual and forecasted demand for the periods being evaluated.

 

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Forecasting running sum of erros

Instead of pinning the tail on the forecaster, try rewarding forecast accuracy

I used to work in a dairy, a 99-year-old family-run business that manufactured ice cream in every flavor imaginable and every package size that our customers would take. One of my responsibilities as director of marketing was to provide our plant manager with sales forecasts. The forecasts were actually produced by three people who worked for me. None of them were full-time forecasters, but they grudgingly admitted that the word “forecasting” appeared somewhere in their job descriptions.

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