Describe The Implications Of Poor Forecasting On A Supply Chain

Poor Forecasting
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Poor Forecasting
Briefly describe the implications of poor forecasting on a supply chain. In other words, what are some of the bad things that can happen as a result of inaccurate demand forecasts?
It is prudent for a manufacturer, supplier, wholesaler, and retailer to forecast the demand for their products. Proper forecasting of the future demand for one's products enables them to determine the type and quantity of goods and services that need to be produced, purchased, or shipped. Projection of demand is significant because the process of the supply chain, which entails conversation and processing of raw materials into finished products that are ready for use is tedious and time-consuming (Saint & Seidel, 2019). On the contrary, some business organizations are so impatient that they cannot spear time to learn the matrix of the market's demand for a product before reacting to the demand. Instead, they project and prepare for potential future demand and start to respond to it in advance so that when it occurs, they will be in a position to deliver their customers' orders ...