General Description of Small Number Precision
1. Many companies have parts and items that sell very small quantities over the course of a year.
2. Peretos law that 20% of the items do 80% of the business has an opposite.
3. 80% of the items do only 20% of the business. This 20% is the hard part.
4. These are the items that create the serious overstocks and these are the items that are difficult to forecast.
5. MyGate Focus Forecasting® handles these small numbers quite a bit better than statistical approaches.
Technical Details of Small Number Precision
1. In the example below , MyGate Focus Forecasting® forecasts 18 for the year.
2. It uses the item's selected curve % monthly distribution to make the monthly forecasts
-- but these multiplications result in remainders that must be distributed properly.
3. MyGate Focus Forecasting® sorts the % into descending sequence and adds 1 to each month in this sequence
-- until the remainder is consumed. This is small number precision.