Management

CO: “Examine the concept of demand-driven forecasting as compared to supply-driven forecasting”

Prompt:

For this week’s assignment you will want to start in Google Scholar (or any electronic Library you may have access to) and locate one Journal Articles (less than 7 years old) that address some facet of forecasting. To Search, start by entering search terms such as “Demand Forecasting” or “Forecasting Methods” into the search bar and a long list of sub-topic titles will appear. Choose a journal article that (a) interests you, and (b) has a PDF version you can download to your PC or MAC. Read the journal article through from start to finish while making notes on the research, the findings, and the conclusions. Then using the Word template provided below, report on the journal article you chose:

Title of the journal article, author, publishing journal, year of publication,
A summation that introduces the Journal article subject matter
Type of research conducted and research question (if there is one)
Background information as to why this journal article was written (look in the Literature Search/Survey section)
Findings and Conclusions if a research-based article
A short summary of what you learned that added to your understanding of demand driven forecasting

Instructions:

Utilize the template attached below for this assignment. Label your submission document as follows: yourlastname_Assignment1.docx (ex: Johnson_Assignment1.docx)
Minimum 1000 words of content of strategic material, double spaced. Content requirement does not include cover page, abstract, nor reference pages
Resources and citations are formatted according to APA (6th edition) style and formatting
Once you submit your document to the assignment folder it will automatically be loaded to TURNITIN.COM for this course. Your similarity scan score must be 20% or less (the following will be excluded: headers, references, etc. prior to instructor grading paper—focus on the content of scan percentage

Demand-driven forecasting

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Date:

Demand-driven forecasting

About the article: Title of the journal article, author, publishing journal, year of publication

            The article, “Developing a Demand-driven Forecasting in Purchasing Case company: Son Phuong Co, LTD” was written by Pham. It is a bachelor’s thesis with 69 pages written in the English language. The article was published in 2019. The author carried out the research as partial fulfilment of degree program in logistic engineering (technology communication and transport). To be more specific, the article was written in February 2019 to not only allow the author to accomplish his degree program but also enhance the understanding of demand-driven forecasting in purchasing and allow researchers, economists and other professionals to advance their knowledge on the concept (Pham, 2019). The article is based on the case of Son Phuong Co. LTD, a growing reseller (a company located in Hanoi, Vietnam) that focuses on agricultural products.

Summary of the article

“Developing a Demand-driven Forecasting in Purchasing” focuses on the ability to predict future demand, a move that allows organizations to react in a profitable way. The article examined that problems that companies experience as they try to find appropriate forecasting models. Organizations experience challenges while preparing for the future due to gaps in demand and purchasing, something that prevents them from attaining their goals.

The author begins by explaining the dramatic changes in demand and supply experienced in the word and the need for demand forecasting. The article uses a case of Kimberly-Clark Corp to emphasize on the significance of demand-driven forecasting. The writer explains how Kimberly-Clark managed to reduce cut down on cost and reduce waste. The article acknowledges the possibilities of incorrect prediction brought about poor approaches to forecasting. The background information, description of the case as well as the objectives are presented in the first chapter.

The author presents demand related theory and knowledge in the second chapter. In this chapter, the writer defines forecasting and explains how it is useful in business especially when it comes to decision making. The article describes the principles of forecasting, demand-driven forecasting process and forecasting models including simple regression, sales force composite, moving average and exponential smoothing models (Pham, 2019). In the same chapter, the author presents a comprehensive explanation of demand planning and purchasing and related concepts. In chapter three describes the methodology used in research. Mixed methods approach that consists of both quantitative and qualitative research methods were employed. The writer describes the two approaches in the article.

According to the author, qualitative research methods were useful in collection of information an presentation of the objective, purpose, concepts and the findings while quantitative research methods were useful in collection and analysis of data. The article also used pictorial representations to explains the relationship between various concepts related to demand and supply. In chapter 4 the researcher presents findings on the study of Son Phuong Co. LTD while in chapter five he provides key findings and conclusions. Pham found out that demand-forecasting has a great impact on the supply chain but the gap between purchasing and forecasting can bring about lead to incorrect predictions (Pham, 2019). Closing the gaps leads to better forecasting and increases the chances of making higher profits and cutting down on cost. Chapter 6 provides a review of the methodology used, reliability and validity of the research, feedback from Son Phuong Company and closing words while in chapter 7 the author provides some sources of the information presented in the article.

Type of research conducted and research question (if there is one)

            Pham carried out applied research to explain how organizations can change their approaches to predicting future demand by using various demand-driven forecasting models. The author uses a case study of a company with a particular focus on demand forecasting in an effort to encourage companies to make a difference in their supply and demand management strategies. The investigator uses qualitative and quantitative research methodology to accomplish the objective as well as the purpose of the research and address the research questions (Pham, 2019). The research questions addressed in the study were the whether it is important to develop a tight relationship between demand planning, purchasing and forecasting, the performance of the demand planning process in an existing company and its role in purchasing and how to develop demand-driven prediction purchasing model.

Background information as to why this journal article was written

The study was meant to explore demand forecasting, demand planning process and purchasing in a bid to develop a demand-driven forecasting model that can enhance purchasing performance (Pham, 2019). With a focus on demand-related concepts, the author intended to show a new perspective of the association between demand planning and purchasing and explain the benefits of demand planning to supply management and the organization in general.

Findings and Conclusions if a research-based article

Demand forecasting has a great effect on the supply chain. However, the gaps that exist between purchasing and forecasting can limit the effectiveness of predicting future demand and supply. The closure of such gaps would enable companies would allow companies to experience the benefits of forecasting including higher profits and lower cost of operations. The researcher discovered that demand planning did work well in Son Phuong due to poor forecasting and working relationships between departments (Pham, 2019). Thus, there are gaps in forecasting and purchasing in the company although the Son Phuong has not experienced huge trouble due to incorrect demand forecasting. Lack of proper planning and forecasting lead s to ineffective supply chain operation, poor supply chain management and loss of market.  Finally, the researcher discovered that it is necessary for one to have an in-depth understanding of the demand-driven supply chain to be able to understand and develop a suitable demand-driven forecasting model

A short summary of what you learned that added to your understanding of demand-driven forecasting.

            From the information presented in the article, have learned that the gaps between purchasing and forecasting can lead to incorrect demand predictions and hence it is important to close such gaps to develop an effective model. I have learned that demand-driven forecasting models can enable an organization to enhance its performance by reducing costs and increasing profitability. I have also learned that demand and purchase planning is key when it comes to demand-driven forecasting.

Reference

Pham, C. C. (2019). Develop a Demand-driven Forecasting in Purchasing.                 https://www.theseus.fi/handle/10024/172090