The transition from a judgmental to an integrative method in demand forecasting: A case study of a Japanese company

Abstract

Purpose

The purpose of this paper is to extract some implications for managing the transition process of demand forecasting.

Design/methodology/approach

Using case study methodology, this paper describes a case of the transition from a judgmental to an integrative method in demand forecasting at Kao Corporation in Japan and extracts useful implications from the case.

Findings

Even if the forecaster and user are not the same, it is found that firms can realize an integrative method of using judgment as input to model building through effective transition management of demand forecasting.

Research limitations/implications

The results of this paper are from a case study. To examine the validity and effectiveness, future research needs to continue case studies and search for cross‐case patterns.

Practical implications

In the transition process of demand forecasting, it is very useful for firms that the forecaster demonstrates the benefits of new forecasting methods through experiential initiatives, solves various problems with the user at the beginning of the transition process, and creates opportunities so that the user experientially acquires the technical knowledge of the forecaster.

Originality/value

Through describing a case of the transition process of demand forecasting in detail, this paper finds useful means for managing the transition process of demand forecasting.

Citation

Nakano, M. and Oji, N. (2012), "The transition from a judgmental to an integrative method in demand forecasting: A case study of a Japanese company", International Journal of Operations & Production Management, Vol. 32 No. 4, pp. 386-397. https://doi.org/10.1108/01443571211223068