Chapter 8 The Role of Forecasting
Our purpose in this chapter is not to go into detail on forecasting methods and software but to talk about how to think about the forecast and evaluate its effectiveness and impact on scheduling.
Every business needs some level of forecasting to commit to manufacturing capacity, staffing, ingredient, material, and component purchases. For example, even with a pull replenishment strategy, replacing what has been used or sold carries the implicit forecast that the future will be like the past, with an amount of variability that can be buffered by inventory. For a make-to-order business, there is a limit to the horizon of customer orders, but the business must continue beyond this ...
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