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What is the difference between forecast and standard demand based on history in supply chain?

SUPPLY CHAIN 

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Question added by Ahmed Elsayed , Supply Chain purchasing & planning Hesham Elsewedy Trading Sector , Hesham elsewedy
Date Posted: 2016/12/18
malvika ramdas
by malvika ramdas , Sales Coordinator , Sherwin williams

Forecasting helps the production and supply chain know the requirements to be met in the coming months. This will help them to plan raw materials, production timing and transportation.

Standard demand based on history can be used as an additional help for forecasting. By knowing the past trends and current demands, we can try to achieve a more accurate forecast.

Panneer selvam xavier
by Panneer selvam xavier , Supply Chain Analyst / Trainer , Infonet

Forecast is nothing but a prediction over your demand, Sales, etc  if you use quantitative methods then for sure you need the demand history or your sales history to predict the future growth. Were as, when you simply look in to your standard demand based on history you can assume a pattern from it and use it in supply chain either the way it is also consider as part of forecast in supply chain.

 

thanks 

Manzoor Alam
by Manzoor Alam , Director , 7th Sky Travel & Tourism Services (Pvt.) Limited

Forecast gives us current possible demand and standard history gives us the previous sales trend. Through both we have to make the possible product availability or production plan, keeping in mind no further stocks piles up!

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