Abstract
This paper deals with categorising errors that exist in qualitative sales forecasts, so that it can be defined what kind of development is needed to improve forecast accuracy. A framework for pointing out different types of sales forecast errors is presented. The framework includes analysing demand profiles of customers and the continuity of under-/over-forecast errors. The error types are named as random error, positive bidirectional error, negative bidirectional error, systematic under/over estimation error and unforecasted sales. The differences between the approaches for reducing each type of error are explained. The use of the framework is illustrated with sales and forecast data of a large process industry company. The analysis steps are illustrated and actions for reducing different types of sales forecast errors are suggested. [Received 15 November 2006; Accepted 11 May 2007]
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
