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This paper challenges conventional wisdom in the area of forecasting and planning: that companies need...
This paper challenges conventional wisdom in the area of forecasting and planning: that companies need
to project forecasts and plans far into the future at a detailed, highly granular level.
Our position is that, in most cases, this is not necessary. Rather, detailed forecasts and plans are normally
needed only inside of what’s called the Planning Time Fence. This is a point in the future: the cumulative
lead time to acquire material and to build the product, plus a short time allowance for planning and order
releasing. Inside of the Planning Time Fence, high granularity is needed. But, most often, not beyond it.