Forecasting And Supply Chain Management Definition
Forecasting is the process of making predictions about future events based on past data and current trends. Supply chain management is the process of managing the flow of goods and services from the point of origin to the point of consumption.
Forecasting is a critical component of supply chain management. Accurate forecasting allows businesses to plan for future demand, which in turn helps them optimize their production and inventory levels. Inaccurate forecasting can lead to lost sales, excess inventory, and higher production costs.
There are many different methods that businesses can use to forecast demand. The most common method is trend analysis, which involves looking at past data to identify patterns and trends. Other methods include regression analysis, time series analysis, and causal modeling.
