Forecasting models usually consider each forecast-item independently. Computing power is virtually unlimited, so you want your model to create the best possible forecast for every single product. On the other end, demand planners do not have the time to inspect every single product (in every single location, for every client). As a demand planner, you need to scale up from analyzing in detail one single item to working on a portfolio with thousands of SKUs. During each forecast exercise, you have the opportunity to review a limited selection of your products. On which items should you spend your time?
In chapter 11, you learned to use value-weighted KPIs to highlight the most important products in a portfolio. In chapter 12, you learned to use the Forecast Value Added framework to ensure that anyone working on the forecast adds value. But these two frameworks will not tell you which products you should focus your attention on when reviewing forecasts. This is the focus of this chapter.