Forecasting Practices of Korean Corporations: Survey Results and Comparison

초록

Accurate demand forecasting is important in the successful supply chain planning and management. Overestimation of forecast may result in the increase of unnecessary inventory, while underestimation of forecast may lead to the shortage of products. Both cases eventually yield undesirable outcomes in the planning and management of supply chain system, either causing inefficient use of resources, or suffering from inadequate capacity to meet anticipated demand. Thus, it is crucial to incorporate precise forecast into the decision-making process for better supply chain planning and management. We conducted a survey of 134 firms to better understand current forecasting practices in Korea, including the level of usage, the use of forecasts, and types of forecasting methods, among others. The survey results, when possible, are compared with the business practices of other countries such as Canada and US. Then, some characteristics of forecasting practices in Korean firms are identified, and some ideas for further improvement of forecasting practices are discussed.