Question

Why is demand forecasting important for effective supply chain management?

Answer 1

Demand forecasting is important for effective supply chain management because-
1- It increases customer satisfaction.
2- It reduces inventory stockouts.
3- Scheduling production more effectively.
4- lowering safety stock requirements.
5- It reduces product obsolescene costs.
6- managing shipping better.
7- improving pricing and promotion management.
8- negotiating superior Terms with Suppliers.
9- It plans for sales strategies.