Faculté des sciences et de médecine

Using stagger charts to improve the accuracy of demand forecasts

Ramosaj, Agneta ; Widmer, Marino

(Internal working papers DIUF ; 20-01)

Nowadays, no business organization can avoid the need for accurate demand forecasting. It helps make the right decisions at every level, strategic or operational, and it is the center of financial simulation or procurement decisions in terms of production. A way to depict company forecasts could be provided by a stagger chart, a visual tool that is easy to implement and is understandable at... More

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    Summary
    Nowadays, no business organization can avoid the need for accurate demand forecasting. It helps make the right decisions at every level, strategic or operational, and it is the center of financial simulation or procurement decisions in terms of production. A way to depict company forecasts could be provided by a stagger chart, a visual tool that is easy to implement and is understandable at each level of the company. In this case study, the sales predictions of an SME are analyzed; the results of quantitative and qualitative forecasting methods are compared and visualized, thanks to a stagger chart. On one hand, quantitative methods provide better forecasts than qualitative methods and, on the other hand, the combination of these techniques with a stagger chart helps the SME drastically improve the accuracy of its demand forecasting.