The forecasting department, traditionally reporting to the sale manager, has historically seen a forecast accuracy of about 60%, and this in turn causes problems for the following departments:
Purchasing: What should we buy and how much?
Production: What should we really build?
Inventory management: We keep building the wrong thing.
The sales manager asked you to write her a memo, specifically addressing the following:
-How could you suggest that your new system would achieve any better levels of forecast accuracy?
-Why is forecast accuracy itself not as important under traditional methods?