Supply Chain Management: A Global Perspective

Chapter 8

Forecasting & Demand Planning

LEARNING OBJECTIVES

After completing this chapter, you should be able to:

1. Explain the impact of forecasting on supply chain management.
2. Describe the forecasting process.
3. Identify key qualitative and quantitative forecasting models.
4. Generate forecasts using quantitative models.
5. Explain how to measure forecast accuracy.
6. Describe methods of collaborative forecasting and demand planning.

Chapter Outline

• What Is Forecasting?

  Forecasting Versus Planning

  Impact on the Organization

  Impact on Supply Chain Management

• The Forecasting Process

  Principles of Forecasting

  Steps in the Forecasting Process

  Factors in Method Selection

• Types of Forecasting Methods

  Qualitative Forecasting Methods

  Quantitative Forecasting Methods

• Time Series Forecasting Models

  The Mean

  Moving Averages

  Exponential Smoothing

  Trend Adjusted Exponential Smoothing

  Seasonal Adjustment

• Causal Models

  Linear Regression

  Multiple Regression

• Measuring Forecast Accuracy
• Collaborative Forecasting and Demand Planning

  Collaborative Planning, Forecasting and Replenishment (CPFR)

  Sales and Operations Planning (S & OP)

• Chapter Highlights
• Key Terms
• Discussion Questions
• Problems
• Case Study: Speedy Automotive

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