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Supply Chain Chapter 12:Demand forecasting and Demand planning
17 cards·by 8680lewielj
What is demand planning?
the combined process of forecasting & managing customer demands to create a planned pattern
of demand that meets operational goals
What is demand forecasting?
a decision process in which managers predict demand patterns.
What is demand managment?
a proactive approach in which managers attempt to influence patterns of demand.
Forecasting too low may lead too (2)
Lost sales, Lower product availability for customers
Forecasting too high may lead to (3)
Money lost holding inventory that is never sold, lost wages, lost capacity
What is a benefit of good demand planning?
• Helps operating managers know which customers they should serve and at what levels of
service.
THe primary goal in designing a forecasting process is to generate forecasts that are ___,
___,___.
usable, timely, and accurate
What is grassroots forecasting?
• A technique that seeks inputs from people who are close in contact with customers and
products such as sales representatives.
What is executive Judgment Forecasting?
• Forecasting techniques that use input from high level experienced managers.
What is judgement based forecasting?
forecasting that attempts to incorporate factors of demand that are difficult to get from
statistical data.
What is Historical Analogy
• A forecasting technique that uses data and experience from similar products to forecast the
demand for a new product.
What is marketing research?
A forecasting technique that bases forecasts on the purchasing patterns and attitudes of
current or potential customers.
What is the Delphi method?
• Forecasts developed by asking a panel of experts to individually and repeatedly respond to a
series of questions.
What are time series models?
models that compute forecast using historical data arranged in the order of occurrence.
What is a Naive Model?
a simple forecasting approach that assumes that recent history is a good predictor of the near
future.
What is a Moving Average?
a forecasting model that computes forecast as the average of demands over a number of
immediate past periods.
What is a weighted moving average?
is a forecasting model that assigns a different weight to each period’s demand according to
it’s importance.