Inventory, Forecasts & Automation: Lessons from the Cash Business

Dr. Mark Frost, Director of Economics and Forecasting, Cash & Logistics, Carreker Corporation

2006 Supply Chain Forecasting Conference Europe
May 18, 2006
Kensington, London
4:30 - 5:00 p.m.

The cash business is similar to other inventory challenges, since money is a product that is demanded by consumers. An interesting question is: How much money should be put into an ATM machine every day? What about when a holiday is coming up? In this session, you’ll learn that forecasting the daily amounts and denominations of money for each ATM machine is a lot like predicting how much milk and what kind of milk a store will sell every day. This presentation will tell you how to forecast a product by taking into account daily patterns of sales (cash withdrawals), along with the effects of changes in availability (e.g. in recently installed ATM machines). You’ll also hear about complex challenges the cash business still faces, like how to simultaneously forecast for a number of geographically similar ATMs and take into account the distance between them.

Session takeaways:

• The role of forecasting when the opportunity cost is asymmetric.
• How and why simple methods may be inadequate for complex problems.
• What challenges the cash business and other industries still face, including simultaneous forecasts

2006 Supply Chain Forecasting Conference Europe

Contact: Ann S Cave
email: ascave@checkfree.com
phone: (678) 375-4039