The Brightwork Forecastable Non Forecastable Formula for Supply Planning
… it, and tune it by showing the results with a group of people with the domain expertise to provide input as to whether the results of the adjusted formula “seems” correct.
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=IF(R-Square>0.7,”Forecastable”,IF(AND(R-Square>.15,Standard Deviation/Series Mean3, MAD>Series Mean*0.333333),”Forecastable”,”Unforecastable”))
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Conclusion
A forecastable/nonforecastable formula can be applied to roughly determine which product location combinations should receive more or less forecasting effort, which product locations should go on reorder points and a host of other factors that assist in supply planning