Search Results for: forecasting

The Overestimation of the Benefits of 3PL Versus Private Fleets

Executive Summary Companies maintain private fleets and they have important advantages. The largest private fleets are concentrated in specific areas. Specific areas of logistics are more prone to outsourcing. Private fleets are shrinking. Interestingly, outsourced transportation is highly promoted while it is infrequent to promote private fleets. Introduction to the Overestimation of 3PL vs Private…

How to Best Understand the Naive Forecast

How to Best Understand the Naive Forecast

Executive Summary The naive forecast creates a baseline forecast that can allow a forecast value-add for more advanced methods. Why the naive forecast so underused. Introduction The naive forecast creates a baseline forecast that can allow a forecast value-add for more advanced methods. Why the naive forecast is so underused will be discussed as well….

Supply Planning References

References  The complete list for the book “Supply Planning with MRP/DRP and APS Software” _____________________________ Abraham, Ajit and Goldberg, Robert. Evolutionary Multiobjective Optimization: Theoretical Advances and Applications (Advanced Information and Knowledge Processing). Springer. 2005 Baker, Kenneth. Optimization Modeling with Spreadsheets. Wiley, 2011. Bazara, Mokhtar S. and John J. Jarvis. Linear Programming and Network Flows. 4th…

How MCA Solutions Should be Remembered

Executive Summary MCA has been acquired. What will some of the critical MCA solutions contribute to supply chain planning software, and what will happen to the MCA product? Introduction Servigistics recently acquired MCA Solutions. This is a significant development as the two companies were the top two software vendors in the service parts planning space….

Inventory Optimization and Multi Echelon Vendor Profiles

Profiles Vendors showcased in the book “Inventory Optimization and Multi Echelon Software.” ToolsGroup ToolsGroup offers unique probability-based supply chain planning (SCP) and inventory optimization solutions that allow companies to master even large, heterogeneous, or demanding supply chains. On the demand side, they incorporate best-of-breed demand modeling, order frequency forecasting, and demand–sensing technology. On the supply…

How to Best Understand Forecast Bias

How to Best Understand Forecast Bias

Executive Summary Forecast bias is distinct from forecast error and is one of the most important keys to improving forecast accuracy. Reducing bias means reducing the forecast input from biased sources. A test case study of how bias was accounted for at the UK Department of Transportation. *This article has been significantly updated as of…

SAP APO Books

Brightwork Research & Analysis SAP APO Books We currently have five books published on SAP APO. All of the books are based upon a combination of real project experience, along with reviews of academic research and the other literature. At Brightwork Research & Analysis we follow the approach of the RAND Corporation with regards to…

Combining the Hierarchies of Two Different Demand Planning Systems

Executive Summary Why hierarchy combination can be important. The importance of keeping the hierarchy in the receiving demand planning system. Introduction In several articles, I have described the importance of recognizing that many very popular enterprise demand planning applications are not good enough at aggregation and disaggregation to make it worthwhile to attempt to perform…

The Problem with SNP Optimizer Flow Control

Executive Summary The SNP optimizer has two types of methods of deployment. The deployment optimizer has major problems with the second method, which is called cost optimization. The deployment optimizer cannot fair sharing stock to locations. This topic is hidden by SAP and SAP consulting companies from customers. Introduction to Optimization in APO In its…

How to Best Understand Demand Sensing and Demand Shaping

How to Best Understand Demand Sensing and Demand Shaping

Executive Summary Demand sensing and demand shaping are two methods that are often promoted to improve forecasting. However, one of these methods is barely ever applied. The other is not a way of improving the forecast but is presented as one by vendors. Introduction Demand planning always has new terms in supply chain forecasting that…