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Assessing the Cost of Forecast Error: A Practical Example

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Author Info
Peter Maurice Catt

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Abstract

Peter provides a detailed tutorial on the costs associated with forecast errors. His procedure considers inventory costs, including safety stock, as well as the costs of lost sales attributable to poor service (out-of stock). He shows how the cost of forecast error (CFE) can be used to determine appropriate safety stock levels. Copyright International Institute of Forecasters, 2007

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File URL: http://www.forecasters.org/foresight/purchase.html
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Publisher Info
Article provided by International Institute of Forecasters in its journal Foresight: The International Journal of Applied Forecasting.

Volume (Year): (2007)
Issue (Month): 7 (Summer)
Pages: 5-10
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Handle: RePEc:for:ijafaa:y:2007:i:7:p:5-10

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Web page: http://www.forecasters.org/
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This page was last updated on 2009-12-8.

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