 Service-level anchoring in demand forecasting: The moderating impact of retail promotions and product perishabilityBen Fahimnia, Tarkan Tan and Nail Tahirov International Journal of Forecasting, 2025, vol. 41, issue 2, 554-570 Abstract: The development of demand plans involves the integration of demand forecasts, service-level prerequisites, replenishment constraints, and revenue projections. However, empirical evidence has brought to light that forecasters often fail to distinguish between demand forecasts and demand plans. More specifically, forecasters frequently incorporate service-level requirements into their demand forecasts, even when explicitly instructed not to do so. This study endeavors to investigate the potential moderating impacts of product perishability and the presence of sales promotions on this phenomenon. Our findings reveal that sales promotions can meaningfully moderate the influence of service levels, since individuals tend to exhibit an elevated propensity for overforecasting during promotional periods when service levels are high. Surprisingly, no compelling evidence is found for the moderating effect of product perishability. Keywords: Demand forecast; Demand plan; Judgment; Service level; Promotion; Perishable; Laboratory experiment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:intfor:v:41:y:2025:i:2:p:554-570 DOI: 10.1016/j.ijforecast.2024.07.007 Access Statistics for this article International Journal of Forecasting is currently edited by R. J. Hyndman More articles in International Journal of Forecasting from Elsevier |
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