Chapter 3. Demand Planning: The Art and Science of Forecasting
It’s only been in the past 20 years or so that businesses have truly come to realize the importance of forecasting. If you think about it, forecasting is usually the first step in the planning and scheduling process for most goods and service organizations and forecasts for demand drive everything in an organization...from longer term decisions (3+ years out) as to new facilities and products to medium term decisions (months to years out) such as production planning and budgeting and the short term (months to a year at most) where we need to know what to produce (or purchase) and deploy (see Chart 3.1).
Chart 3.1. Typical Planning and Scheduling Process
The function itself has evolved ...
Get Supply Chain and Logistics Management Made Easy: Methods and Applications for Planning, Operations, Integration, Control and Improvement, and Network Design now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
