7

Demand Forecasting

Learning Objectives

After reading this chapter, you will be able to answer the following questions:

  • What is the role of forecasting in supply chain management?
  • What are the different methods of forecasting? How do firms choose the most appropriate model for a given context?
  • How do firms use historical demand data in forecasting?
  • What are the significant behavioural issues that need to be considered while designing a forecasting system in the organization?

Mr and Mrs Ahluwalia have come to Ambala to see off their son. While waiting for the train, Mr Ahluwalia picks up a local newspaper and a huge, four-colour supplement catches his eye. Browsing through it he realizes that it is an advertisement. Big Bazaar has floated ...

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