O&G Drilling Bits Demand Forecasting

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Summary:
As of today, the sponsor company handles demand forecast for drilling bits in a manual S&OP process requiring the input of people from 30 geographic business units, called “geounits”. While looking at the historical data, it is possible to find some correlations between bit runs and certain parameters that determine the level of drilling activity (e.g., rig count, market share, oil price). This project addresses the following question: how can the sponsor forecast upcoming drilling bits activity and associated revenue based on a set of lagging and leading indicators?