Managing Functional Biases in Organizational Forecasts: A Case Study of Consensus Forecasting in Supply Chain Planning

Topics:
Logistics Planning
Tags:
Forecasting,
Harvard University,
Sales,
Sales Force Management,
Supply Chain
Source:
Harvard University

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Overview: To date, little research has been done on managing the organizational and political dimensions of generating and improving forecasts in corporate settings. This paper examines the implementation of a supply chain planning process at a consumer electronics company, concentrating on the consensus forecasting approach around which the process revolves. The analysis reveals how the implemented forecasting process manages the political conflict and individual and group biases occasioned by organizational differentiation. The paper shows that the forecasting process, together with the supporting mechanisms of information exchange and elicitation of assumptions, is capable of managing the political conflict and the informational and procedural shortcomings that accrue to organizational differentiation.

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Format: PDF | Size: 147KB | Date: Oct 2006 | Pages: 35

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