2002 by
Prentice Hall, Inc.
12-9
1.Institutional DSS: (cont.)
B.For Sales Forecasting (e.g., Sara-Lee):
§Previously sales forecasts came
from sales force - were too optimistic, inventories were
excessive.
§Then time-series analysis of
historical data was used, did not handle impact of sales promotions
well.
§Now companies use multiple
regression models in order to inject “explanatory variables”
into analysis of historical data - and therefore into the
forecasts
Types
of DSS: Institutional