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Demand Driven Variable and Attribute based Forecasting and

Statistical Process Control


SPC (Statistical Process Control) focuses on Variables and Attributes in the Dataset
Attribute Data includes specific values that we do expect in our data (Level, Trend, Seasonality,
Moving Holidays, Exams, Promotions, competitive Activity etc.
Variable Data includes any value that we do not expect / want in our data (Out of Stock, Trend
Intervention, Irregularly Scheduled Promotion, Competitive Activity, Economics etc.
Normal Distribution Control Charts

Static Forecasting using Linear


Dyanamic
Regression
Forecasting using Winters
Model
Minimum
MAPE Solution
Statistical
Process Control to check
MAPE
Process
within Capability
5% and Tracking

Integrating demand and inventory planning system

Reduce inventory investment

Attenuate the Bullwhip Effect

SPC doesnt eliminate variation, but it allows the user to track special causes of variation

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