Explain the role of demand forecasting in a supply chain


Discussion Post: Supply Chain Management

Forecasting is only one of the three key activities in CPFR [Collaborative Planning, Forecasting and Replenishment]. Planning is the process of working together to organize and to resolve key barriers to rapid and efficient delivery of goods in the supply chain. Replenishment is the activity of accomplishing timely, accurate and complete fulfillment between partners in the supply chain and between distribution centers and selling locations. The middle activity, Forecasting, has to have as its end result a reliable order forecast that the supplier actually uses to drive acquisition and manufacturing to support on time and complete shipping. Many companies have spent a lot of effort on collaborative forecasting, but few are addressing order forecasting. Those partners that are not arriving at an order forecast actually used by the supplier are not getting at the heart of the matter. Larry Smith, West Marine1Learning Objectives

After completing this chapter, you should be able to

a) Explain the role of demand forecasting in a supply chain.

b) Identify the components of a forecast.

c) Compare and contrast qualitative and quantitative forecasting techniques.

d) Assess the accuracy of forecasts.

e) Explain collaborative planning, forecasting and replenishment.

Textbook: Principles of Supply Chain Management: A Balanced Approach, 3rd Edition. Chapter 5 DEMAND FORECASTING.

The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.

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Supply Chain Management: Explain the role of demand forecasting in a supply chain
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