Types and levels of forecasts in logistics and supply chain

Types and Levels of Forecasts in Logistics and Supply Chain

Forecast: Predictions of future demand, trends, or events to guide decision-making in logistics and supply chain management.

Customer Demand

Market demand

Supply

Supplier performance

Raw Material Availability

Financial

Channel Demand

Budgeting

Cost Analysis

Risk

Disruption Risk

Market Risk

Types:

Levels:

Strategic:

Long term forecast (3-5 years)

Used for capacity planning, facility expansion, and major investments.

Tactical

Operational

Medium-term (6-18 months)

Guide decisions about production scheduling, inventory management, and resource allocation.

Short-term (weeks to a few months)

Inform day-to-day decisions, such as order fulfillment, transportation routing, and workforce planning.