Acquiring supply chain agility through information technology capability: the role of demand forecasting in retail industry

Abstract

PurposeDespite 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.Design/methodology/approachCombining the literature reviews, the quantitative method of algorithm analysis was targeted at, and the firm data were processed on MATLAB.FindingsThis 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.Practical implicationsManagers 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.Originality/valueThis 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.