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A retailer can postpone order placement to obtain a better demand forecast with a shorter supply lead time.However, the manufacturer would charge the retailer a higher cost for a shorter lead time and set restrictions on the ordering times and quantities.For example, if the current year is 2008 and a journal has a 5 year moving wall, articles from the year 2002 are available.Demand forecasting is the art and science of forecasting customer demand to drive holistic execution of such demand by corporate supply chain and business management.

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Demand forecasting may be used in production planning, inventory management, and at times in assessing future capacity requirements, or in making decisions on whether to enter a new market Demand forecasting is predicting future demand for the product.What happens when a supply chain is plagued with a bullwhip effect that distorts its demand information as it is transmitted up the chain?In the past, without being able to see the sales of its products at the distribution channel stage, HP had to rely on the sales orders from the resellers to make product forecasts, plan capacity, control inventory, and schedule production.HP’s product division was a victim of order swings that were exaggerated by the resellers relative to their sales; it, in turn, created additional exaggerations of order swings to suppliers.

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In the past few years, the Efficient Consumer Response (ECR) initiative has tried to redefine how the grocery supply chain should work.1 One motivation for the initiative was the excessive amount of inventory in the supply chain.

To include an item in a demand forecast, you must assign it to an item allocation key.

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