Description
Discuss how forecasting effects the supply chain of an automobile manufacturer. Consider especially the forecasting and supply chains involved in manufacturing a new model (entirely new, not an edition/annual change). How do the individual supply chains for the subparts effect the larger supply chain of the whole automobile. How does forecasting effect the just-in-time or lean production system used in most automobile manufacturing plants?
Example of a typical automobile supply chain:
- Suppliers for raw materials
- Suppliers for parts and subsystems
- Automobile manufacturer (Ford, in the example). Within a company, there are also different departments, which constitute the internal supply chain:
- Purchasing and material handling
- Manufacturing
- Marketing, etc.
- Transportation providers
- Automobile dealers
Explanation & Answer
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SUPPLY CHAIN FORECASTING
In the management of the supply chain, forecasting forms a significant element without
which marketers, as well as organizations, will hardly meet their objectives. The industry of
automobiles involves various innovations in engines, spare parts or even an entire change in the
brands. This attributes of the automobile companies demand an integration of the...
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