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What is consensus forecast?how its used?what are the
FORECAST models invovled in?
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Answer Posted / james bond
As the word says it...its a consensus. Among different
business unit which are responsible for forecasting.
APO gives flexibility with providing various forecast
models. These are
1. Univariate
1.1. Moving Average
1.2. Exponential Smoothing
1.3. Seasonal
2. Causal
2.1. Multiple Linear regression
3. Composite
3.1. Weighted average
You can employ these models while defining multiple planning
books and prepare forecast. Next you deliver these modeling
results to S&O team, Management to decide the suitability.
You may also want to include external factors like new
product launch or seasonal product promotions to be included
in the forecast model. After all this brainstorming you
arrive at one final approved plan which your company will use.
Hope this helps.
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