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No matter what business you are in, there is always a need for future estimates in order to plan. However, at a more finite level, it may be critical to take a closer examination of how precision and accuracy of a forecast variance strategy affect other parts of your planning process. This perspective reveals observations of how different forecasting strategies affect simulated safety stock levels and replenishments. By examining how your own planning system responds to similar tests, you might expose some deficiencies that are limiting your ability of meeting inventory objectives.
A case study on planning techniques.