dummy

Knowledge base

SUPPLY CHAIN
FORECASTING
ANTIPATTERNS
  • Supply Chain antipatterns
  • Devil’s advocate
  • The 100% service level
  • LEARN MORE →
PRICING

SUPPLY CHAIN TOPICS

Image

ABC ANALYSIS

ABC analysis is an inventory categorization method which consists in dividing items into three categories, from the most valuable items to the less valuable. This allows to give them a weighed treatment to better optimize the inventory.

BACKORDERS

Backorders represent purchase orders made to the supplier for products that are already out of stock from a given location being served. Backordering is the process of selling inventory the company doesn’t have on hand.

CONTAINER SHIPMENTS

Container shipments represent a specific supply constraint frequently associated with oversea import. This constraint must be satisfied with preserving the demand forecasts that are established separately.

FORECASTING TOPICS

Image

BACKTESTING

The notion of backtesting refers to the process of assessing the accuracy of a forecasting method using existing historical data. This articles explains this process and the mistakes to avoid.

CONTINUOUS RANKED PROBABILITY SCORE (CRPS)

Probabilistic forecasts assign a probability to every possible future. Yet, all probabilistic forecasts are not equally accurate, and metrics are needed to assess the respective accuracy of distinct probabilistic forecasts. CRPS is an accuracy metric dedicated to probabilistic forecasts.

FORECASTING ACCURACY

The accuracy, when computed, provides a quantitative estimate of the expected quality of the forecasts that can serve several purposes. This articles defines the different metrics used to assess this accuracy and provides a few warnings against misconception.

ANTIPATTERNS TOPICS

Image

Supply Chain Antipatterns

Antipatterns aren’t just bad practices. Antipatterns are common responses regarded as good practices, which unfortunately yield serious unintended consequences and defeat the expected benefits.

Devil's advocate

Management has met with an enterprise vendor, and everybody was immediately seduced by the vendor’s proposed solution. The vendor was promising an easy path: all the complexity would be handled by the vendor himself thanks to their unique technology and methodology.

The Non-Euclidian Horror

Every time a new challenge arises, IT systems are adjusted at a minimal level to deliver the expected results. Narrow incremental changes are now strongly favored over any substantial evolutions. Nobody really understand any more what is going on within the company systems.

MORE ANTIPATTERNS TOPICS

PRICING TOPICS

Image

bundle pricing

With bundle pricing, the seller lowers the variance on this willingness to pay and increases its profit by selling bundles of products instead of selling all products separately. Moreover, the seller makes bundles in order to fulfill a specific need of its customers.

competitive pricing

Competitive pricing consists of setting the price at the same level as one’s competitors. This method relies on the idea that competitors have already thoroughly worked on their pricing. In any market, many firms sell the same or very similar products, and according to classical economics, the price for these products should, in theory, already be at an equilibrium (or at least at a local equilibrium).

cost-plus pricing

Cost-plus pricing consists of setting the price based on the production cost and the desired level of mark-up. This method allows a company to secure margin and is easy to compute on a large amount of products. This method is widely used by retail companies today on at least some of their products.

RELATED CONTENT

Do you share our love for technology and supply chain topics? Follow us on our different channels and be informed of our latest discoveries!
Image

LOKAD TV

Are you interested by Artificial Intelligence, blockchain, forecasting accuracy, the increasing popularity of Data Scientists, S&OP and more? Then take a look at our interviews on Lokad TV and leave us comments to join the debate.

GO TO YOUTUBE

Image

OUR BLOG

Share our views on supply chain-related and IT topics: from stock reward and text mining for better demand forecasts to Deep Learning, cross-entropy and GPU computing. Follow us through our latest events and publications.

VISIT THE BLOG

Image

NEWSLETTER

Sign up for our newsletter. Keep up to date with our latest news and technological evolutions. This is not a spam letter; we keep our newsletter publications to twice or thrice a year. You can unsubscribe in one click.

SIGN UP HERE

top