THE IMPACT OF FORECAST ERROR AND POSITIONS OF PARTICIPANTS ON SUPPLY CHAIN PERFORMANCE

摘要

The objective of this study is to seek insights to improve supply chain performance. This study investigates three research questions: (1) what impact does different levels of demand forecast errors have on supply chain performance, (2) what impact does positions of participants in a supply chain have on supply chain performance, and (3) Will the impact of forecast error on the supply chain performance differ due to positions of participants in a supply chain? The performance is measured by Order Fill Rate, Work-In-Process inventory, and Finished Goods Inventory. Results of this study indicate that forecast error has significant impact on the supply chain performance for all the three performance measures. The positions of participants have significant impact on the supply chain performance for Finished Goods Inventory and Work-In-Process inventory whereas the participants position is insignificant for Order Fill Rate.