Stability in the inefficient use of forecasting systems: A case study in a supply chain company

Computer-based demand forecasting systems have been widely adopted in supply chain companies, but little research has studied how these are actually used the process. We report findings of a case study pharmaceutical company over 15-year period. At start study, managers believed that they were making extensive use their system was marketed based on accuracy its advanced statistical methods. Yet most forecasts obtained using system’s facility for judgmentally overriding automatic forecasts. Carrying out judgmental interventions involved considerable management effort as part sales & operations planning (S&OP) process, yet often only served to reduce forecast accuracy. This uses observations interviews with participants and data investigate why continued non-normative practices many years despite potential economic benefits could be achieved through change. The reasons longevity examined both from perspective individual forecaster organization whole.