Kesavan, Saravanan; Gaur, Vishal; Raman, Ananth - In: Management Science 56 (2010) 9, pp. 1519-1533
Firm-level sales forecasts for retailers can be improved if we incorporate cost of goods sold, inventory, and gross margin (defined by us as the ratio of sales to cost of goods sold) as three endogenous variables. We construct a simultaneous equations model, estimated using public financial and...