Demand Forecasting Fundamentals

Description

Demand Forecasting Fundamentals Course  

This class provides a practical introduction to the principles and techniques used to predict future demand accurately. It lays the essential groundwork needed to understand how forecasts are created, how they are used in replenishment and planning, and why forecast accuracy matters. 

Who Is It Suitable For?

This program is designed for:

• Merchandisers, buyers, supply chain managers and their teams.
• IT departments
• Consultants and vendors supplying and selling forecasting systems.

Course Objectives

By the end of this program, learners will be able to;

• Explain the theory, principles and practice of forecasting
• Apply the most appropriate forecasting approach to each different situation
• Describe best practice forecasting processes
• Articulate various ways in which forecast accuracy can be measured and improved

Detailed Content

Foundations of Demand Forecasting

• Prerequisites to support good forecasting
• The difference between demand and sales data
• Recognizing key product characteristics
• Applying ABC analysis
• ABC analysis and in-stock service levels

Replenishment and Forecasting Methods

• Time Series and Profile Forecasting
• Inventory Driven Replenishment
  • MIN/MAX Replenishment
  • Sell One Get One (SOGO)
• Using Averages for Forecasting
  • Simple Moving Average
  • Weighted Moving Average
• Plan Based Adjustments
  • Variance Against Plan
• Profile Based Forecasting
  • Forecasting with Profiles

Forecast Accuracy

• Inventory Review Horizons
• Store vs. Chain Forecasting
• Measuring Forecast Error using MAD and MAPE
• Key Calendar Events and Promotions Tracking
• Learners completing the mastery test and obtaining a 70% pass mark will also receive a mastery certificate upon completion.

Benefits of Studying This Program

Learners studying this program will be able to review the forecasting methods they use and improve them as necessary. This will result in reduced forecast error, better on shelf availability, lower clearance markdowns and closer achievement of terminal stock targets.

Hours of Study

On average learners take 1.5 - 2 hours to study this course.

Resources Included

Blog articles on inventory management.

Pre-Requisites Necessary

A basic understanding of key retail processes, such as taught in the Buying and Merchandising Overview module.

After This Program

The next logical program in developing learners’ knowledge is Advanced Demand Forecasting.

Video

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