demand-consensus-valtitude

18 Feb 2020

Forecast overrides in Demand Consensus

Consensus Demand Planning - Forecast Overrides

In a demand consensus process, a typical scenario could be an over-ride of the customer aggregated bottom-up forecast.

Without worrying about the sins and optimality of the over-ride, how will you treat the over-ride?

Let us say the Demand Consensus is to increase the forecast by 5K units, will you dis-aggregate this to each customer using proportionate weights? What are the pros and cons?

Alternatively, will you put this over-ride in a plug bucket that as the balancing figure?

How common and pre-dominant is the plug bucket?

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