Be sure to sign up for the StartupNation newsletter to stay up-to-date on small business and entrepreneurial news, trends and how-tos. As an added bonus, you will receive FREE instant access to the StartupNation Business Builder eBook series!

The Advantages of Probability Forecasting

Kristin SmithKristin Smith Posts: 6subscriber Member
edited August 1 in Logistics Management
A point forecast is one single number that usually is incomplete. This single number is most likely the value of future demand. However, a more useful forecast is a probability forecast because it provides more than just units, and demand of dealing with volatility.
Tagged:

Comments

  • charucharu Posts: 12subscriber Bronze Level Member
    Forecasting allows you to determine your customers’ future purchasing behaviors using different types of methodologies and analysis of data. Companies who have been able to create reliable forecasting predictions have seen a reduction in inventory waste, an increase in production capabilities, and an overall cost savings throughout the supply chain.
  • Kristin SmithKristin Smith Posts: 6subscriber Member
    That's right charu, thinking ahead of time for your ERP gives you enough flexibility in the long-range.
Sign In or Register to comment.