Demand planners face challenges in forecasting demand for new product families, often resulting in discrepancies between initial forecasts and actual sales. A case in point is Apple’s iPhone X launch, where planners misjudged SKU-level demand, leading to excess inventory for some models and stockouts for others. To mitigate this, managers should recognize SKU-level spread bias and adopt a differentiated planning approach. Utilizing multiple demand estimates, refining forecasts with early demand signals, and fostering collaboration among teams can enhance forecasting accuracy and improve inventory management, ultimately benefiting supply chain performance.

Source: https://www.scmr.com/article/how-to-improve-demand-forecasts-for-new-product-families