Forecast to Stock (FTS)
A mega-process involving demand forecasting, inventory planning, and stock management to ensure product availability.
Implications
A supply chain strategy that involves producing or ordering inventory based on demand forecasts rather than actual orders, often used to ensure product availability and reduce lead times, but with the risk of overstock or stockouts if forecasts are inaccurate.
Example
Example: An electronics manufacturer uses the Forecast to Stock method to produce popular gadgets based on projected holiday sales, ensuring products are available in stores ahead of demand but risking excess inventory if forecasts are off.
Related Terms
Different from just-in-time (JIT) inventory management, which produces or orders stock based on actual demand, FTS relies on predictive models to anticipate demand and prepare inventory in advance.
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