A supply chain operation needs to find and maintain the middle ground between too much stock and too little stock for it to operate successfully. This is done through forecasting. The supply chain operation’s ability to assess products over a specified period is known as capacity. Forecasting, capacity, and materials requirements planning are interrelated and together influence a supply chain’s ability to successfully have the right product available for the customers at the right time.
Assess the supply chain planning analysis, covering forecasting, capacity, and materials requirements planning and then address the following:
The introduction should introduce the reader to the contributions of capacity, materials management, and forecasting to a firm’s ability to manage a supply chain successfully.
Examine how a firm can use demand forecasting to anticipate changing customer demand for its product successfully.
Discuss how capacity and materials requirements planning help the firm meet the customer’s demand for its product.
How can the firm adjust its capacity and materials to meet its production goals?
How often should the firm review its forecast to ensure that it remains relevant?
The conclusion should summarize key points from the forecasting, capacity, and materials planning analysis discussed above.
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