The result when each stage in the supply chain makes its own separate forecast is often a match between supply and demand because these forecasts are often very different.

Question

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When each stage in the supply chain makes its own separate forecast, there is a risk of mismatch between supply and demand because these forecasts might differ significantly, leading to inefficient allocation of resources and higher costs of operations. Therefore, it is important to integrate these forecasts and collaborate across the supply chain to achieve better visibility and synchronization.

The Result When Each Stage in the Supply Chain Makes