ForecastingWorst Case / Best Case
It can be useful to examine worst case and best case scenarios. This technique is discussed in greater detail in the Forecasting section of the Team Member Guide. To summarize, enter your worst case into the Marketing decision area. To produce a 120 day inventory above your worst case, multiply by (365+120)/365 or 4/3rds. Put the result into the Production decision area (less any inventory on hand). For example, if your worst case is 1000 units, and you want a 120 day spread, produce enough to give you an inventory of 1000*4/3 or 1333. For a 90-day spread, produce 5/4ths or 1.25 times your worst case.
Each product contributes points. If you company has 3 products, each product can contribute 33 points. If it has 8, each product can contribute 12.5 points.
The more products one has, the less likely it becomes that a company will earn 100 forecasting points. If you have 8 products, you need 8 good forecasts. On the other hand, if your company has fewer products, a missed forecast costs more points. If you have three products, a miss costs 33 points.