Discuss how forecasting effects the supply chain of an automobile manufacturer. Consider especially the forecasting and supply chains involved in manufacturing a new model (entirely new, not an edition/annual change). How do the individual supply chains for the subparts effect the larger supply chain of the whole automobile. How does forecasting effect the just-in-time or lean production system used in most automobile manufacturing plants?
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Example of a typical automobile supply chain:
- Suppliers for raw materials
- Suppliers for parts and subsystems
- Automobile manufacturer (Ford, in the example). Within a company, there are also different departments, which constitute the internal supply chain:
- Purchasing and material handling
- Marketing, etc.
- Transportation providers
- Automobile dealers