Supply Chain Management, Optimization and Forecasting Techniques

Abstract

Supply chain management is one of the biggest challenges of today when it is crucial to remain active in the market and competitive without compromising the processes within the company itself. The costs of production and living in general are increasing day by day and it is up to the management of the company to reduce costs to the lowest possible level in order to maintain profitability in the market. In this paper we address the issue of the supply chain and forecasting method. The impact of supply chain management extends beyond reducing costs (Farris II & Hutchison, 2002).  Forecasting methods are very important for company plan, production plan, sales and similar segments of a company. The study introduce and find prediction method brings better planning for the production or sale of other parts of the supply chain within the company. Each optimization brings a new loss reduction and increase in profit, so firms need to choose the right method to predict the needs of the company. The Q model introduced by the study is one of the most used methods within supply chain optimization