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Collaborative Forecasting in Retail Supply Chains

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Handbook of Information Exchange in Supply Chain Management

Part of the book series: Springer Series in Supply Chain Management ((SSSCM,volume 5))

Abstract

Collaborative forecasting (CF) is a supply chain information sharing initiative in which two or more members in a supply chain (e.g., a retailer and a manufacturer) share their demand forecasts to form a single shared demand forecast, which is used as the basis for production and replenishment decisions. This chapter provides an overview of the existing academic research on CF practices in retail supply chains. In particular, this chapter focuses on highlighting the models used to capture the essence of CF practices and summarizes the key findings and insights about the value of CF.

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Notes

  1. 1.

    In a retail industry report, Gruen et al. (2002) find that stock-out rates vary wildly among retailers but mostly fall in the range of 5–10 %. In studies that examine faster selling and/or promoted products, the stock-out rate regularly exceeds 10 %. The overall average stock-out rate worldwide is estimated at 8.3 %.

  2. 2.

    VMI is sometimes also referred to as Continuous Replenishment Program or Supplier Managed Replenishment.

  3. 3.

    Category is defined as a group of interrelated products (e.g., oral care category) and the idea behind category management is to manage each category as a strategic business unit.

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Author information

Authors and Affiliations

  1. Owen Graduate School of Management, Vanderbilt University, Nashville, TN, 37203, USA

    Mümin Kurtuluş

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  1. Mümin Kurtuluş
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Correspondence to Mümin Kurtuluş .

Editor information

Editors and Affiliations

  1. Hong Kong University of Science and Technology, Kowloon, Hong Kong

    Albert Y. Ha

  2. University of California, Los Angeles, California, USA

    Christopher S. Tang

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Kurtuluş, M. (2017). Collaborative Forecasting in Retail Supply Chains. In: Ha, A., Tang, C. (eds) Handbook of Information Exchange in Supply Chain Management. Springer Series in Supply Chain Management, vol 5. Springer, Cham. https://doi.org/10.1007/978-3-319-32441-8_3

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