Forecasting and demand planning

In the third fiscal quarter of 2001, Cisco’s sales plunged 30%, and it had to write off inventory worth $2.2 billion. About 8,500 employees were laid off, and its stock plunged from a high of $82 in 2000 to just $13.63. 1 What went wrong, and is forecasting an exact science? Why do made to stock (MTS) production systems still dominate manufacturing across the world? Why are firms still so dependent on advance forecasting for their procurement, production, and sales planning? How important are short lead times for achieving accurate forecasts? What are the alternatives to technique-based forecasting?