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Forecastability is an important word in demand planning.  Oddly, the word forecastability is not listed in the Merriam-Webster dictionary nor is it found in Wikipedia.  However Wiktionary describes forecastability as “A measure of the degree to which something may be forecast with accuracy”.  That something could be an item used in the production of a finished good or the finished good itself.

 

In healthcare that something could save a life. Prudent healthcare providers must ensure the availability of products that play a critical role in a hospital setting. This is good news for the patient. Unfortunately, the bad news is that the strategy for achieving desired fill rates ties up huge amounts of capital. In fact, there is so much overstock that a company called Hospital Overstock has made a business out of buying excess inventory from hospitals and clinics. Sadly a lot of inventory is lost, damaged, expired or becomes obsolete.


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