Supply Chain Forecasting · Advanced · 2 MIN READ

Dynamic regression with external drivers

Advanced methods need monitoring as well as training. This short read considers dynamic regression with external drivers and how to detect when yesterday’s fit no longer holds.

Advanced methods need monitoring as well as training. This short read considers dynamic regression with external drivers and how to detect when yesterday’s fit no longer holds.

Practitioner lens

Forecast distributions from dynamic regression with external drivers become actionable when passed into inventory, sourcing or capacity models. Preserving uncertainty is often more useful than collapsing it too early.

First experiment

Propagate predictive distributions into the downstream inventory or capacity decision where possible.

This is an original educational brief. It is a starting point for discussion, not a claim that one technique fits every supply chain.