03/20/2018

Beware the Models

Data models are easier said than done

“But….all of our models have accuracies above 90 percent…our system should be working perfectly!”

Those were the words spoken by the CEO of a mid-sized manufacturing company. These comments were made during a conversation about their various forecasting models and the poor performance of those models.

This CEO had spent about a million dollars over the last few years with a consulting company who had been tasked with creating new methods and models for forecasting sales and manufacturing. Over the previous decade, the company had done very well for themselves using a very manual and instinct-driven process to forecast sales and the manufacture processes needed to ensure sales targets were met.

Please select this link to read the complete blog post from Eric D. Brown.