Optimization Of Demand Forecasting Management For Multi-class Products In Company D

Along with the differentiation of bu yer markets, the differences among demand are enlarging, thus mult i-class product strategy become popular. In the meanwhile, globalization and competition become severe, business active area have to be extended widely, resulting in worldwide manufacture strategy and cross-region marketing strategy, that make the demand forecasting management more complicated and important than before.Demand forecasting management include the factors, like the target of forecasting, data collection, the forecasting method, the frequency and the way of forecasting. These facts vary a lot for those multi-class products whose demand features and market condition are very different, and that makes it more difficult for those enterprises who produce and sell multi-class products.The company discussed in the paper is facing the very same: She produces and sells thousands of chemical products to a wide range of industries, demand and supply features var y a lot, the source of forecasting data, forecast accuracy and the financial contribution to the company are all different, that makes her current demand forecasting management s ystem ineffective and slow to the dynamic market condition.Therefore, multi-class products forecasting management is proposed in the paper.In the chapter 4, multi-class product forecasting management classifies the demand firstly based on the principle of classification. It creates a demand forecasting classification model with two dimensionality. Vertical dimensionality of classification model is so called “Predictability” dimensionalit y. The evaluation metrics include: the available of historical data, forecast accuracy and demand stabilit y. Another horizontal dimensionality of classification model is so called “Importance” dimensionality. The evaluation metrics include: sales revenue, gross margin, strategic importance and growth potential.In the chapter 5, all demand are classified according to these evaluation metrics of classification model. Upon the classification result, an appropriate forecasting management package fitted for each classification is being worked out, including factors: forecasting target, the method of forecasting, the frequenc y and the way of forecasting and etc.In the end, according to the analysis of demand classification, and proposal of appropriate forecasting management package, the current forecasting management process is improved b y integrating these outcomes, which can be executed at enterprise’s operational level. Including: The input of the process-Information collection, exchange and timing, the frequency of the meeting; The output of the process-demand plan, market information and business decision; The facilitator, responsible person and auditor of each embedded process.The innovation of the paper is to use classification principle to create a demand forecasting classification model and forecasting management package and process upon that, which will inspire the enterprise to solve the problem in a balanced way.