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From Manufacturing Executive Institute
Three Techniques to Reduce Aggregate Sales Forecast Error by MORE THAN 25 Percent in LESS THAN 100 Days
...Chief Forecaster does!
All forecast error eventually results in increased inventory error. When actual sales arrive at a rate less than the forecast, the result is residual inventory. Likewise, when actual sales outstrip the forecast, customers backorders result which almost always results in someone swearing to never let that happen again resulting in an increase in either safety stock or
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