6 How long should the forecasting horizon be?
As a demand planner, the time you can dedicate to reviewing demand forecasts is limited. You need to focus your attention on a limited number of products and a limited forecasting horizon.12 To put it simply, you cannot work on three-years-forward forecasts for every single product in your portfolio. You simply don’t have the time. Instead, you need to focus your attention on the forecasting horizon that is the most useful for your supply chain.
How long should this high-focus forecasting horizon be?
As usual, you should answer this question by thinking about what your supply chain is trying to optimize ...
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