Setup of different simulated scenarios
| Scenario | Explanation | |
|---|---|---|
| S0 | Base run | Based on the basic parameters which model has been constructed |
| S1 (Accuracy Ctrl) | Control of demand forecast changes | This scenario introduces a section to the basic model that compares the new period’s demand with its predicted equivalent from the previous period, controlling the limits of changes. Two auxiliary variables, “acceptable tolerance” and “accurate demand”, are included to determine whether the new demand falls within the acceptable tolerance range compared to the previous forecast |
| S2 (Stock Ctrl) | Demand control based on product inventory | This scenario emphasises the effective use of FOC tools to manage product inventory and temporarily reduce market demand, preventing lost sales. If the product inventory exceeds the demand generated by the targeted FOC (FOC trend), the marketing and sales team will adjust the FOC accordingly to avoid sales losses |
| S3 (Accuracy Ctrl+Stock Ctrl) | Combination of scenarios 1 and 2 | This scenario analyses the model outputs based on the combination of Scenarios 1 and 2 |
| Scenario | Explanation | |
|---|---|---|
| S0 | Base run | Based on the basic parameters which model has been constructed |
| S1 (Accuracy Ctrl) | Control of demand forecast changes | This scenario introduces a section to the basic model that compares the new period’s demand with its predicted equivalent from the previous period, controlling the limits of changes. Two auxiliary variables, “acceptable tolerance” and “accurate demand”, are included to determine whether the new demand falls within the acceptable tolerance range compared to the previous forecast |
| S2 (Stock Ctrl) | Demand control based on product inventory | This scenario emphasises the effective use of |
| S3 (Accuracy Ctrl+Stock Ctrl) | Combination of scenarios 1 and 2 | This scenario analyses the model outputs based on the combination of Scenarios 1 and 2 |
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