Asked by Eribel Almonte on May 26, 2024
Verified
Collaborative forecasting based on sales to the end customer can help enterprises further up the supply chain reduce forecast error.
Collaborative Forecasting
A process where multiple stakeholders, often from different levels of the supply chain, work together to predict future demand or trends.
Forecast Error
The difference between the actual outcome and the predicted outcome, often used in the context of demand forecasting in supply chain and finance.
- Gain insight into the concept of collaborative forecasting and its role in enhancing the efficiency of supply chain management operations.
Verified Answer
AV
Adriana VillagomezMay 31, 2024
Final Answer :
True
Explanation :
Collaborative forecasting based on sales to the end customer allows enterprises to have greater visibility into demand patterns and can help reduce forecast error by incorporating real-time customer behavior data into the forecast. This can, in turn, benefit companies further up the supply chain by providing more accurate demand signals and reducing the risk of stockouts or overstocks.
Learning Objectives
- Gain insight into the concept of collaborative forecasting and its role in enhancing the efficiency of supply chain management operations.
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