Planning Nervousness in Product Segmentation: Empirical Analysis of Decision Parameters

Abstract

Previous research presents a theoretical relation between planning nervousness and product segmentation and indicates that the concept should be subject to further research. This paper seeks to empirically confirm this relation, by developing hypotheses and testing these on a specific case. Three hypotheses related to historical planning data, planning frequency, and demand variability are developed and tested using data from three-echelons in a case company. A key finding is a confirmation of the relationship, providing operational tools that can assist organizations in battling planning nervousness. © IFIP International Federation for Information Processing 2014.