The three pillars of governed forecast
- Governed Assumptions Documented, versioned, and auditable assumptions: demand drivers, seasonality, events, external signals. Every scenario has explicit assumption; monthly review validates what changed and adjusts the model.
- Calibrated Predictive Models Algorithm selection (ARIMA, Prophet, regression, XGBoost, ensemble) by demand type. Time series models calibrated separately for sales forecast and demand forecast, MAPE measured by SKU/segment, and historical backtest before production.
- Auditable Scenarios Base, optimistic and conservative scenarios, with comparable assumptions and sensitivity analysis. Every commercial commitment and supply decision has a source scenario and traceable assumption, instead of a single number without context.