Using hierarchical forecasting to align inventory levels in a two-stage supply chain: an empirical approach
Journal of Operations and Logistics, 4(1), 35-55, September 2011
Penina Orenstein, Ph.D.
Department of Computing and Decision Sciences
This paper considers a two-stage supply chain in which a single supplier, the Green Flavor Tea (GFT) ships a custom blend of pre-mixed tea compound to a single customer, Best Tea (BT). The authors compare the performance of several forecasting methods which appropriately account for seasonality with the aim to improve inventory planning between GFT and BT. The analysis concludes with some recommendations as to how to implement the collaborative forecasting model with the supply chain partners.