Definition #
Time series models incorporating market signals, trends, and external factors.
Key Characteristics #
- Promotional impact modeling
- Weather integration
- Inventory optimization
- Scenario planning
Why It Matters #
Reduces overstock by 35% and stockouts by 50% (Journal of Retail).
Common Use Cases #
1- Seasonal inventory planning 2- New product launches 3- Supply chain resilience
Examples #
- Blue Yonder Luminate
- o9 Solutions
- RELEX
FAQs #
Q: Forecast horizon?
A- Typically 3-18 months. Longer for strategic planning.
Q: External data sources?
A- Integrates Google Trends, weather APIs, and economic indicators.