What is Forecasting in Supply Chain Management

#demandforecasting #supplychainmanagement #supplychain
So, what is Forecasting in Supply Chain Management? I'm glad you asked. In this video, I'll be discussing what forecasting is, what it is used for in supply chain management, and some common pitfalls to avoid when forecasting.
Forecasting in supply chain management refers to the process of predicting future demand for products or services in order to inform decision-making related to production, inventory management, and logistics. Accurate forecasting is critical for effective supply chain management, as it enables organizations to plan production schedules, optimize inventory levels, and allocate resources effectively.
Forecasting in supply chain management typically involves analyzing historical data on product demand, as well as external factors such as economic trends, seasonal patterns, and customer behavior. There are several methods of forecasting that can be used, including:
Qualitative forecasting: This involves relying on expert opinions and subjective judgments to predict future demand, such as by using market research, surveys, and focus groups.
Time series analysis: This involves analyzing historical data on product demand to identify patterns and trends that can be used to predict future demand.
Causal analysis: This involves analyzing the relationship between product demand and other variables, such as economic trends or marketing campaigns, to predict future demand.
Simulation and scenario analysis: This involves creating models to simulate various scenarios and predict future demand based on different assumptions and inputs.
The accuracy of forecasting in supply chain management can be improved by using multiple methods and continually refining the forecasting process based on actual demand data. Effective forecasting can help organizations avoid stockouts, reduce excess inventory, and improve overall supply chain efficiency.
Supply chain management is a crucial function in any business, and forecasting is an essential part of planning and managing customer demand. This video will help you understand what forecasting is and help you avoid some common pitfalls in forecasting.
00:00 Intro
00:11 - Agenda
00:26 - What is Forecasting?
02:22 - Customer Demand?
04:30 - Planning
05:11 - Scheduling
06:18 - Key Takeaways
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Thanks, Rebecca! Although I no longer teach Operations Management at WGU, I am glad to see that these videos are beneficial to students.🙂

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