Why is poor forecasting responsible for ineffectiveness of global supply chain of medicines and health services?
Answers
Forecasting is a tool which helps industries anticipate demand and adjust their production accordingly to meet this demand.
Hence in this case, poor forecasting results in over or underproduction of medicine and health services. The former leads to a glut in the medical market while the latter situation leads to scarcity of resources.
In the field of medicine and health services, it is difficult for the forecasting tool to include factors like sudden and large-scale outbreak of diseases (as a result of natural calamities), which often leads to imbalance between production and demand.
Forecasting is an important tool or method used by the pharmaceutical companies to know and anticipate the demand for the medicines for the future and accordingly make adjustments in their production levels to meet the demand of the future.
Explanation:
- The various gaps and weaknesses in demand forecasting result in a mismatch between supply and demand of medicines.
- There are times when forecasting the demand for future results in a mismatch because there might be a sudden outbreak of a certain health issue or disease in the country.
- That is why in the field of medicine and health services, it is not easy for the forecasting tool to include factors like a sudden and large-scale outbreak of diseases in the country.
- This is the reason that there are a mismatch and ineffectiveness of the global supply chain of medicines and health services.
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