2011 Business Forecast Systems Inc

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• Opt-in Survey of Trends e-Newsletter Readers • 71 Completed Responses 1. Does your company currently utilize any type of ABC/Pareto classification or analysis? 2. If you use ABC/Pareto for revenue analysis, do you look at: historical revenue, forecasted revenue, both historical and forecasted revenue? (one selection allowed). 3. When you use ABC/Pareto, what are the A-Group, B-Group and C-Group defined by: ranking, cumulative volume, other? (multiple selections allowed). 4. How often do you revise or change your ABC/Pareto classifications: every planning cycle, periodically, never? (one selection allowed) 5. What part of the organization do you work in? To see the original survey click here © 2011, Business Forecast Systems, Inc.

ABC/Pareto is most-often applied at the detail-level. © 2011, Business Forecast Systems, Inc.

However, two-thirds of the companies report using the approach for aggregate-level analysis. © 2011,

Analyzing volume appears to be most common, but forecasters are using ABC/Pareto as a quality control tool. Sixty percent report using the approach for analyzing error. © 2011, Business Forecast Systems, Inc.

ABC groups are more often defined using cumulative volume than using ranking. Although multiple selections were allowed, only 27% use both cumulative volume and ranking © 2011, Business Forecast Systems, Inc.

For almost all companies using ABC/Pareto, classifications are revised or changed over time. For almost all, the percentage of items which change classification from revision to revision is 20% or less. © 2011, Business Forecast Systems, Inc.

Additional Resources Trends Archive A searchable archive of 5+ years of Trends newsletters Foresight Web Site for Foresight: The International Journal of Applied Forecasting www. forecastingprinciples. com Professor Scott Armstrong at the Wharton School’s “Forecasting Principles” Site www. forecasters. org International Institute of Forecasters Web Site © 2011, Business Forecast Systems, Inc.

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