This paper analyzes the impact of forecasting on the supply chain performance of a majorglobal manufacturer of specialty chemicals. Research design is developed on the basis ofoperational dynamics present in the supply chain under consideration. The operationalperformance measures included in this study are total supply chain cost, broken down intoinventory, production and shipment costs, and also four different measures of customerservice level. Alternative forecasting methods are evaluated by examining each performancemeasure via tradeoff curves are developed by incorporating cost and customer serviceperformance measures simultaneously. The additional benefits of using trade-off curves areshown by comparing their results to those of the traditional ANOVA and Tukey’s meanstests.
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