Chapter 2
Forecasting
, Lecture Outline
• Strategic Role of Forecasting in Supply Chain
Management
• Components of Forecasting Demand
• Time Series Methods
• Forecast Accuracy
• Time Series Forecasting Using Excel
12-2
, Forecasting
• Predicting the future
• Qualitative forecast methods
• subjective
• Quantitative forecast methods
• based on mathematical formulas
12-3
, Supply Chain Management
• Accurate forecasting determines inventory levels
in the supply chain
• Continuous replenishment
• supplier & customer share continuously updated data
• typically managed by the supplier
• reduces inventory for the company
• speeds customer delivery
• Variations of continuous replenishment
• quick response
• JIT (just-in-time)
• VMI (vendor-managed inventory)
• stockless inventory
12-4
Forecasting
, Lecture Outline
• Strategic Role of Forecasting in Supply Chain
Management
• Components of Forecasting Demand
• Time Series Methods
• Forecast Accuracy
• Time Series Forecasting Using Excel
12-2
, Forecasting
• Predicting the future
• Qualitative forecast methods
• subjective
• Quantitative forecast methods
• based on mathematical formulas
12-3
, Supply Chain Management
• Accurate forecasting determines inventory levels
in the supply chain
• Continuous replenishment
• supplier & customer share continuously updated data
• typically managed by the supplier
• reduces inventory for the company
• speeds customer delivery
• Variations of continuous replenishment
• quick response
• JIT (just-in-time)
• VMI (vendor-managed inventory)
• stockless inventory
12-4
