Collaborative Forecasting – Pro Alliance
Ciret, a supplier for painting and decorating tools, is currently facing errors in their orders forecast and, consequently, increasing their stock worth. In fact, the forecast inaccuracy leads to increased overall costs because of the future related problems, such as overstocking, out-of-stock and bullwhip effect.
Painting and decorating product sales, as all the other products in the DIY market, are affected by seasonality. Promotions and cross-selling are other two factors that influence home and garden product sales. Pro Alliance, a Belgian company that is offering a cloud-based platform to solve supply chain inefficiency, is wondering how to solve the Ciret’s problems. Consequently, the project is going to focus on the best forecasting method and replenishment policy to adopt in a single-echelon supply chain in order to reduce inventory costs from the supplier perspective (Ciret), considering sharing (collaborative community with the retailers) and no sharing information (orders from retailers).
Painting and decorating product sales, as all the other products in the DIY market, are affected by seasonality. Promotions and cross-selling are other two factors that influence home and garden product sales. Pro Alliance, a Belgian company that is offering a cloud-based platform to solve supply chain inefficiency, is wondering how to solve the Ciret’s problems. Consequently, the project is going to focus on the best forecasting method and replenishment policy to adopt in a single-echelon supply chain in order to reduce inventory costs from the supplier perspective (Ciret), considering sharing (collaborative community with the retailers) and no sharing information (orders from retailers).
