Collaborative Forecasting in Retail Supply Chains

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.