Question

Why is forecasting necessary in OSCM?

Short answer

Answer

Big retailers use a set of strategic skills and techniques known as operations and supply chain management to be successful.

Step-by-step solution

OSCM

OSCMrefers to designing, operating, and improving the system that develops and distributes the company's key goods and services. The worldwide management of a system that produces a product or offers services is referred to as OSCM.

Necessity of forecasting in OSCM

OSCM requires forecasting because businesses must prepare for the future to satisfy market demands efficiently and effectively. The majority of decisions require time to implement.

It may take more than a year to execute facility decisions, whereas distribution decisions may take a week or two. Because of this lead time, businesses cannot simply wait until a demand develops before deciding how to respond. Instead, businesses must plan, and predictions enable them based on the most up-to-date information.