Comparison of two rolling forecasting mechanisms for three-echelon supply chains

Rolling forecasting as applied to customer requirements for squeezed delivery time is generally discussed in two-echelon supply chains. Because more complicated supply chains become impractical, this study investigates the existence of rolling forecasting advantages in a three-level supply chain, including the derivation of maximum benefits and influence of forecast frozen cycle time. Advantages varied between three rolling forecast information-sharing models built based upon the reach of information sharing along the supply chain. Supplier chain partners benefit differently from rolling forecasts. The results indicate that (1) suppliers benefit greatly when collaborative rolling forecasts are implemented, (2) the frozen cycle time is positively associated with overall performance, especially when suppliers can directly acquire rolling forecast data from customers, and (3) increasing the visibility of information by transmitting rolling forecast information from customers to all supply chain partners is critical for overall performance.