Judgmental adjustments to statistically generated forecasts have become a standard practice in demand forecasting, especially at a stock keeping units level. However, due to the subjective nature of judgmental interventions this approach cannot guarantee optimal use of available information and...

The paper shows that due to the features of SKU (stock-keeping unit) demand data wellknown error measures previously used to analyse the accuracy of adjustments are generally not advisable for the task. In particular, percentage errors are affected by outliers and biases arising from a large...

Prediction of demand is a key component within supply chain management. Improved accuracy in forecasts directly affects all levels of the supply chain, reducing stock costs and increasing customer satisfaction. In many application areas, demand prediction relies on statistical software which...