Global Operations- Module 4 Assignment.docx - Running Head...

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Running Head: Module 4 Assignment Name: Mushota Mukupo Student No: GSB900404 Course: Global Operations Management Course Code: OSM 5122 Lecture: Dr Raj Parikh Date: 13th December 2020 1. Discussing Forecasting – The case of Deckers
Forecasting is a scientific approach which has serious implications when it comes to the integration of supply chain, the management of inventory and planning for resources. Forecasting places its reliance on studying past, present and future trends. It relies on historical data, using such data as inputs so that an informed position is attained for purposes of determining future trends. Organizations in businesses use forecasting in planning for their financial year. They apply forecasting in budgeting, planning for their income and expenditure. According to Chen (2018), the planning is guided by the anticipated demand for the goods and services that are being offered. At Decker’s, I have observed from the video that their forecasting process is in tandem with the sales forecasting strategies such as trend analysis, moving average methods, exponential smoothing curves, weightage average, past trends, demand forecasting etc. T he video highlights the fact that forecasting is a precondition to making good decisions. With its accurate forecasting, Decker’s is able to efficiently coordinate with all customers groups and all its suppliers. Forecasting is a continuous process, which highly depends on the knowledge and understanding of the trends in the shoe sales. Decker’s can arrive at future demand forecasts by comparing the actual demand with the forecasted demand. Several forecasting strategies are seen being implemented with the whole system being integrated in the supply chain management. Highlighted also is the fact that even as forecasting is taken seriously, there are still excess products such as seasonal goods which when the appropriate season expires, they pause a risk of sitting as excess inventory
which is costly to store in the warehousing facilities. They end up being sold at reduced

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