Article ID: | iaor19931676 |
Country: | United States |
Volume: | 33 |
Start Page Number: | 47 |
End Page Number: | 50 |
Publication Date: | Dec 1992 |
Journal: | Production and Inventory Management Journal |
Authors: | Sanders Nada R. |
In operations environments where frequent forecasts need to be generated for many items, practitioners typically judge forecast accuracy based on standard-error measures. Using data from one operations setting, this article shows that this may not provide best results in terms of organizational cost. The greatest reduction in organizational cost may occur when forecasting is done with a combination of a few simple forecasting models.