
The Psychology of Demand Forecasting: How the Anchor Effect Distorts Predictions
Imagine building a domino chain with each piece precisely lined up to form a perfect sequence. But the first domino is heavier than the others. If the chain falls, the additional weight changes its course and unpredictably influences the rest of the chain. In demand forecasting, the anchor effect acts like this overweight domino. Understanding this cognitive pitfall is critical for a better, more flexible forecasting strategy. Let's explore what the anchor effect is, why it persists, and how smart tools can help restore balance.









