In times of shortage, how do you allocate inventory to customer orders?
It is tempting to fall back on hard allocation. This could be a mistake.
Here’s why. With a download simulation to prove it.
The dilemma of demand planning: to use a forecast or history.
We cannot expect history to repeat itself, yet every day we are reminded of inaccuracy and bias in the forecast.
How to combine the forecast and history to get a true measure of demand.