Journal Article

Exploring the consequences of judgmental and quantitative forecasting on firms' competitive performance in supply chains

Esteki, Farahnaz, Tabaeeian, Reihaneh Alsadat, Salehzadeh, Reza

2020

Overview

PurposeThe purpose of this study is to examine the impacts of different forecasting methods (judgmental, quantitative and mixed forecasting) on firms' supply chains and competitive performance.Design/methodology/approachWorking with three groups of manufacturing companies, we explore the consequences of judgmental, quantitative and mixed forecasting methods on firms' competitive performance in supply chains. The validity of constructs and path relationships was examined using structural equation modeling (SEM).FindingsOur findings indicate that supply chain efficiency influences both cost reduction and customer satisfaction. In addition, the three dimensions of supply chain performance are shown to be direct antecedents of competitive performance. Our empirical results reveal that although all studied forecasting methods meaningfully influence supply chain performance, the mixed method, compared to the other two methods, has greater capabilities to enhance supply chain performance.Originality/valueThis research provides originality and insight into supply chain practices through forecasting methods to improve competitive performance.

• Publisher: Emerald Publishing Limited,Emerald Group Publishing Limited
• Subject: Business competition / Competition / Competitive advantage / Cost reduction / Customer satisfaction / Customers / Decision making / Economic forecasting / Efficiency / Energy consumption / Forecasting / Globalization / Hypotheses / Inventory control / Multivariate statistical analysis / Production planning / Social responsibility / Studies / Supply chain management / Supply chains