Poor forecasting leads to poor #business decisions and can sometimes lead to catastrophic results.

Optimistic forecasts often mean that the firm projects a demand that is much higher than the actual demand and will lead to inventories pilling up and retailers having to discount the products to clear the shelves.

The reverse is true if the forecast is too pessimistic. This means that the project demand is much lower than actual demand. In this case, the risk is of stock-outs at the retailers end and there will be many dissatisfied customers.

Also, many companies still rely on manual or semi-automated forecasting tools, such as Excel spreadsheets, and these are far from optimal.

This tool https://analytics.winnovia.co/app/03_dfims will help you improve your forecasting accuracy so that you can optimize your company’s inventory management performance. It estimates demand/sales forecast using different time series methods, then apply this forecast to calculate the inventory reorder point based on customer inputs.