Gartner Research

Range-Based Demand Planning: Accuracy Trumps Precision

Published: 17 November 2017

ID: G00342173

Analyst(s): Marko Pukkila


Effective demand planning does not have to be an exact science. This research helps supply chain leaders responsible for demand planning establish a range planning capability that provides demand plans that are accurate enough to support scenario planning in their S&OP process.

Table Of Contents
  • Key Challenges



  • Develop a Range Plan by Calculating the Planning Process Control Limits With the Historical Forecast Errors
  • Determine If the Current Planning Process Is Good Enough

Demand Planning Process That Is "Good Enough"

Demand Planning Process Incapable of Meeting Requirements

  • Leverage the Range-Based Plan in Supply Chain Decision Making
    • Scenario No. 1: Consensus Plan
    • Scenario No. 2: Upside Opportunity
    • Scenario No. 3: Downside Risk

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.