Shrinkage for Long Term Scheduling

Is it fine to not allow shrinkage when working on long term scheduling like 12 months in advance forecast?

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If you are looking at long term capacity planning - you will want to include shrinkage in your calculation. After all - shrinkage is going to happen and if you don’t plan for staffing including that shrinkage, chances are you will be understaffed when the future arrives.

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In long-term scheduling and forecasting, it is generally not advisable to completely ignore the potential for shrinkage or changes in demand. Shrinkage refers to a reduction in demand or resource requirements due to various factors such as economic conditions, market trends, technological advancements, or changes in consumer behavior.

While it may be challenging to accurately predict and account for all possible changes in demand over a 12-month period, it is essential to incorporate some level of flexibility and adaptability into the forecasting process.
In summary, while it might be challenging to predict shrinkage accurately in long-term forecasting, it is crucial to acknowledge its possibility and incorporate a certain degree of flexibility into the planning process. This approach will help you make more realistic, adaptable, and effective scheduling decisions.

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