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Operations Management: Strategic Role of Forecasting

Chapter 12: Forecasting

Please read about forecasting and give a summary of it. Give your reference from where you summarized from.

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The Strategic Role of Forecasting In Supply Chain Management:

The different customer channels have diverse growth rates that are hard to predict, this is one of the qualities that make it the forecasting to be difficult. It is paramount that the organization develops accurate forecasts for the corporate commodities within the supply chain so as to determine the amount of initial products that are required. This will create an accurate demand establishment of the needed products from the customer base of the organization. The forecasting sequence is developed between the sales and the operations that take the strategic marketing plans, the customer trends, the sales trends and the seasonality. In the present global generation, the business environment has coupled the strategic planning design that focuses on the supply chain management with quality management.

Components of Forecasting Demand:

A forecast is a prediction of what is expected to occur in the future of the organization. It is imperative for the corporations to attempt and predict the number of commodities that they will be selling and the future operations of the company. The forecast that is given on the company product is based on the most important decision planning, decision gathering, scheduling, inventory, production facility layout and the design of the commodity. The long range company strategic plans that are made by the managers of the organization are on the basis of the forecasts that the client base will demand in the future. This will be dependent on the type of products that the consumers will require in the future location of the product market. Forecasting is an uncertain procedure that cannot be consistently predicted. The management depends on the forecast hopping that they are accurate and effective for the future ...

Solution Summary

In 1,186 words, this solution discusses forecasting and its role in supply chain management, components of forecasting demand, forecasting accuracy, the forecasting process, and moving average.