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625).
In the HP cast study, the Supply Chain shows the DeskJet product is manufactured prior to being shipped to the distribution centers in the various overseas locations. The products are customized prior to shipping to the distribution centers; therefore, inventories cannot be shared due to the localization. The concern with this process is that they are unable to predict the demand of the product for specific countries and could be over producing creating a backlog of inventory (Chase, Jacobs, and Aquilano, 2005, p. 625).
Forecasting in Europe has proved to be a great challenge. The four forecasting techniques are qualitative, which is “based on estimates and options;” casual relationship, which identifies environmental factors that cause demand; simulation, which is based on a model of assumptions; and the time series analysis, which states “past demand can be used to predict future demand” (Chase, Jacobs and Aquilano, 2005, p...
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