Despite the importance of demand forecasting in retail industry, its influence on supply chain agility has not been sufficiently examined. From a total information technology (IT) capability perspective, the purpose of this paper is to examine the antecedent of supply chain agility through retail demand forecasting.
Combining the literature reviews, the quantitative method of algorithm analysis was targeted at, and the firm data were processed on MATLAB.
This paper summarizes IT dimensions of demand forecasting in retail industry and distinguishes the relationship of supply chain agility and demand forecasting from an IT capability view.
Managers can derive a better understanding and measurement of operating activities that appropriately balance among supply chain agility, IT capability and demand forecast practice. Demand forecasting should be integrated into the firm operations to determine the agility level of supply chain in marketplace.
This paper constructs new theoretical grounds for research into the relationship of demand forecasting-supply chain agility and provides an empirical assessment of the essential components for the means to prioritize IT-supply chain.
