L L Bean
CHAPTER SEVEN
Discussion Questions
1. What role does forecasting play in the supply chain of a build-to-order manufacturer such as Dell?
Although Dell builds to order, they obtain PC components in anticipation of customer orders and therefore they rely on forecasting. This forecast is used to predict future demand, which determines the quantity of each component needed to assemble a PC and the plant capacity required to perform the assembly.
2. How could Dell use collaborative forecasting with its suppliers to improve its supply chain?
Collaborative forecasting requires all supply chain partners to share information regarding parameters that might affect demand, such as the timing and magnitude of promotions. Dell could share with their components suppliers all of the promotions, e.g., holiday, back-to-school, etc., they have planned. These suppliers could, in turn, notify their suppliers of discrete components that a spike in demand is anticipated. These demand forecasts......
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