CHAPTER 1Demand-Driven Forecasting in the Supply Chain

The world is changing at an increasing pace. Consumers are becoming more demanding, and they expect products and services of high quality, value for their money, and timely availability. Organizations and industries across the globe are under pressure to produce products or provide services at the right time, quantity, price, and location. As global competition has increased, those organizations that fail to be proactive with information and business insights gained risk loss of sales and lower market share. Supply chain optimization—from forecasting and planning to execution point of view—is critical to success for organizations across industries and the world. The focus of this book is on demand‐driven forecasting (using data as evidence to forecast demand for sales units) and how cloud computing can assist with computing and Big Data challenges faced by organizations today. From a demand‐driven forecasting perspective, the context will be a business focus rather than a statistical point of view. For the purpose of this book, the emphasis will be on forecasting sales units, highlighting possible benefits of improved forecasts, and supply chain optimization.

Advancements in information technology (IT) and decreasing costs (e.g., data storage, computational resources) can provide opportunities for organizations needing to analyze lots of data. It is becoming easier and more cost‐effective to capture, store, and gain insights ...

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