The sell-in forecast was then translated into a sell-through
forecast by assuming maintenance of a maximum level of channel inventory (inventory at
downstream DCs and at resellers) for each SKU of approximately 7–8 weeks of inventory at the sellthrough
rate. Sales directors’ compensation was based not only on top-line revenue, but also on
margins and weeks of inventory in the channel, thus limiting the “upside” of an inflated forecast.
The sales directors’ bottom-up forecast was based on orders and retail and distribution partner
feedback, and was instrumental in determining the first 13 weeks of the master production schedule.