The Impact of Aggregate Forecasting on Strategic Investment and Growth

The forecast of demand forms the basis for all
strategic and planning decisions in a supply chain.
Throughout the supply chain, all push processes are
performed in anticipation of customer demand whereas
all pull processes are performed in response to
customer demand. For push processes, a manager must
plan the level of production. For pull processes, a
manager must plan the level of available capacity and
inventory. In both instances, the first step a
manager must take is to forecast what customer demand
will be. For example: Dell orders PC components
in anticipation of customer orders, whereas it
performs assembly in response to a customer orders.
To determine the amount of components to have on hand
(a push process) and to determine the capacity needed
in its plants (for pull production). Dell requires a
forecast of future demand. Forecasts are also needed
further up the
supply chain.

Autorentext
Roland Gratzer has more than 10 years experience in electronics and machining industry and complemented this experience with high class education. Worikng abroad in Japan, China and Thailand, graduating with excellence at the MBA program and a proofen track record in strategic management and leadership are part of his profile.

Klappentext
The forecast of demand forms the basis for all strategic and planning decisions in a supply chain. Throughout the supply chain, all push processes are performed in anticipation of customer demand whereas all pull processes are performed in response to customer demand. For push processes, a manager must plan the level of production. For pull processes, a manager must plan the level of available capacity and inventory. In both instances, the first step a manager must take is to forecast what customer demand will be. For example: Dell orders PC components in anticipation of customer orders, whereas it performs assembly in response to a customer orders. To determine the amount of components to have on hand (a push process) and to determine the capacity needed in its plants (for pull production). Dell requires a forecast of future demand. Forecasts are also needed further up the supply chain.