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Supply Chain Management

Supply Chain Management

write a summary of minimum 250 words from the book:

Principles of Supply Chain Management: A Balanced Approach, 3rd Edition

12 point Times New Roman, double spaced

Chapter 5   DEMAND FORECASTING

Forecasting is only one of the three key activities in CPFR [Collaborative Planning,Forecasting and Replenishment]. Planning is the process of working together to organizeand 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 fulfillmentbetween partners in the supply chain and between distribution centers and sellinglocations. The middle activity, Forecasting, has to have as its end result a reliable orderforecast that the supplier actually uses to drive acquisition and manufacturing tosupport on time and complete shipping. Many companies have spent a lot of effort oncollaborative forecasting, but few are addressing order forecasting. Those partnersthat are not arriving at an order forecast actually used by the supplier are not gettingat the heart of the matter.Larry Smith, West Marine1Learning Objectives

After completing this chapter, you should be able to•Explain the role of demand forecasting in a supply chain.•Identify the components of a forecast.•Compare and contrast qualitative and quantitative forecasting techniques.•Assess the accuracy of forecasts.•Explain collaborative planning, forecasting and replenishment.


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