Terrene: Ideally, your material requirements planning will help you minimize understocked and overstocked products while maximizing the number of products that have just about the right amount of stock compared to their demand..If we were to create a histogram of the the ideal forecasted demand vs. actual demand of the all the products, their distribution would look something like the following:.But in reality, most forecasting methods lead to a large number of understocked and overstocked products, leading the distribution graph to look more like the following:.This means, to make up the low amount of stock, you have to bear the extra costs in shipping and production to meet the demand. On the other end, when you have excess stock you have to keep the extra inventory in your warehouses for unknown lengths of time which is very expensive and when the product line changes you are left with dead stock..Terrene uses Machine Learning to learn from historical data and analyze what leads to overstocked and understocked products in your warehouses. Terrene learns automatically learns from the mistakes of traditional forecasting methods and itself and continues to iterate on itself until it achieve...
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