Accurate demand forecasting is one of the keys to guaranteeing a balance between product availability, service levels and operating costs. Since 1997, Linear's mission has been to solve complex planning problems based on mathematical modeling, statistics and artificial intelligenceand applied directly to the reality of the supply chain. 

In this article, you will understand how Linear's solutions help companies increase the accuracy of their demand forecasts and make more assertive decisions. 

Science-based demand forecasting 

Linear has developed a forecasting engine that applies statistical and artificial intelligence models to analyze time series, identify patterns and anticipate demand with high precision. 

Among the methods applied are: 

  1. Traditional models: Cubic Spline, Exponential Smoothing, Linear, SARIMA, TBATS 
  2. AI models: Decision Tree, Elastic Net, Gradient Boosting, K Neighbors, Lasso, Neural Networks, Ridge, Random Forest, SVR 

These models take into account seasonality, promotions, exogenous variables and the specific behavior of each product and market. They are also capable of segmenting demand and identifying outliers automatically, offering a robust and personalized view of the forecast. 

Otimix: forecasting integrated with planning 

O Otimix is Linear's main platform for supply chain planning. Its functionalities include: 

  1. Generating multiple scenarios with different premises 
  2. Integration with processes strategic, tactical and operational 
  3. Visualization of surpluses, shortages, bottlenecks and idleness 
  4. Support for the definition of sales, production and supply targets 
  5. Analysis of logistical and production trade-offs 

With this, Otimix allows demand forecasting to stop being just an estimate and turn into a active decision-making toolwith data integrated into the entire planning cycle. 

iDRP: assertiveness in the short term 

For daily primary distribution planning, Linear offers the iDRP, a web platform focused on: 

  1. Demand Sensing for more granular forecasts 
  2. Supply optimization considering surplus, shortage and coverage rules 
  3. Composition of loads and generation of shipments based on logistical and tax parameters 
  4. Monitoring of positioned stock, stock in transit and shelf life 

With iDRP, forecasts are dynamically adjusted to operational reality, guaranteeing reduction of stocks at the end and reduction of out-of-stocks. 

Intelligence applied to forecasting 

Linear's tools not only predict, but learn and evolve over time. This is possible thanks to the combination of: 

  1. Custom modeling per client 
  2. Interaction with ERP and legacy systems 
  3. Modern environments with integrated dashboards (Excel, Web, Power BI) 
  4. Handling of historical data with promotion marking and recurring corrections 

This technological ecosystem guarantees high-quality forecasts, with a direct impact on materials planning, production, supply and commercial strategy. 

Conclusion 

Demand forecasting needs to be accurate. It sounds redundant, but this is the competitive edge of those who turn data into decisions. Linear offers a unique and deeply technical approach that combines science and business to deliver robust, customizable and effective solutions. 

If you want to increase the accuracy of your demand forecast and improve the performance of your supply chain, talk to the Linear team. We have the technology, knowledge and experience to take your planning to the next level. 

Click here to get in touch and find out how to apply mathematical intelligence to your business. 

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