Question

QUESTION 2 (20 MARKS)

(a)What is Forecasting and what role does it play in Supply chain Management? [5 MARKS]

(b) Discuss any three Qualitative Forecasting Techniques with relevant practical examples. [15 MARKS]

Answer 1

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Q.A) What is Forecasting and what role does it play in Supply chain Management?

Forecasting -

It is a process of predicting the future based on the past and present data. It is estimated by analysis of trends. It helps the management to take important future decisions based on the past and present scenario despite of it's uncertainties.

Role in supply chain management -

Generally demand forecasting is used in the supply chain management. With the help of forecasting, a company can develop it's logistics and supply as well as can increase it's customer services. It also helps to launch new type of product in the market after the market research. With proper forecasting, an organization can be able to keep enough goods available for the customers to satisfy their uncertain demands and that too by not increasing the inventory and holding costs.

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