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The use of advance order data in demand forecasting
Authors:Joanne S Utley  J Gaylord May
Institution:1. School of Business and Economics, North Carolina A&T State University, 313 Merrick Hall, Greensboro, NC, 27411, USA
2. Department of Mathematics, Wake Forest University, Winston-Salem, NC, 27109, USA
Abstract:This paper uses advance order data and historical demand data from a manufacturing shop and from a service operation to develop and test a forecasting methodology for predicting customer demand over a forecast horizon. The proposed methodology uses simple linear regression to model the relationship between a total demand ratio and a partial demand ratio. Comparison of the proposed model to a standard regression approach and a commonly used multiplicative model showed that the proposed model exhibited the greatest forecast accuracy.
Keywords:
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