Are your biases impacting your forecasting? On the Rebound Podcast

Listen inasAbe EshkenaziandBob Trebilcocktalk to author Jonathan Karelse about behavior economics and the state of demand planning and forecasting on this episode of The Rebound.

The one thing we know for sure about a forecast is that it’s probably wrong. And, it’s not just weather forecasters. The best demand plans and forecasts are never on the mark. Or, as authorJonathan Karelsewrites in his book “Histories of the Future,” for all the technological advances in the field, “forecasting remains the business of guessing….[ forecasts] will always be, to some extent, wrong.”

Onthis episodeof the Rebound, Abe Eshkenazi and Bob Trebilcock talk to Karelse about the emerging field of behavioral economics and supply chain planning. While AI and Machine Learning are supposed to revolutionize the field, Karelse says that we will always need people to review and approve computer generated plans. And, when that happens, unconscious biases can often lead us to make assumptions that lead to planning errors unless we understand how our behavior can affect outcomes.

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Click hereto read The human touch in forecasting and demand planning, Jonathan Karelse’s article from the September 2021 issue of SCMR.

Click hereto listen to another podcast with Jonathan Karelse.