Handling product range complexity A case study on re‐engineering demand forecasting

Studies the problem of forecasting demand on the article level in a competitive consumer goods market. First the conventional approach to forecasting is discussed. A number of weak points of the demand forecasting unit approach are identified. Next, a new approach to forecasting based on applying scaling models, is presented. The method is then tried out and evaluated in the context of a real life business case. Shows that the advantage of the assortment forecasting process is its simplicity and strong means for feedback. Combined with a strong focus on consumer values, the method has potential to produce reliable forecast based on promotion and assortment change inputs.