The ability of an organization to control the variability in forecasting and customer demand will enable the organization to effectively respond. According to the Massachusetts Institute of Technology (MIT) research of corporate supply chain practices reveals that variability at the end of the supply chain is magnified and distorted as it proceeds up the chain. In business such distortions can have a negative impact across the supply chain effecting inventory levels, manufacturing and logistics costs which will limit the optimization of resources (Wisner, Leong, Tan, 2005). The following paper will include the difference in forecasting from service to product and the implications on both manufacturing and service companies when forecasts vary significantly from the demand.
Impacts of Forecasting / Resources
Forecasting is an estimate of what the future demands are which allows for planning and more accurate business decisions. All organizations whether service or product deal with an uncertain future, there are some expected errors between the forecast and the actual demand. The goal of forecasting is to minimize the deviations between the... [continues]
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