Models for Forecasting, Demand Management, and Capacity Planning

MODELS FOR FORECASTING, DEMAND MANAGEMENT, AND CAPACITY PLANNING 

what goes into the upstream side of the chain is quite different from what is needed at the downstream side. In the early levels of the supply chain evolution, this complication leads to allowances being made for forecast error, additional buffers to inventories to cover contingencies. 

The complications associated with these weak practices have a great effect on supply chain operations and the financial results that accme as firms increase safety stocks to meet many contingency situations and cycle times are extended to accommodate information variability and inaccuracy. The advanced players do not accept this situation and expend time and effort to eliminate the problems and introduce new processes and systems that bring greater accuracy and efficiency to entering, planning, and fulfilling orders. 

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