Forecasting in Supply Chain Management

Front

What is the purpose of forecasting in supply chain management?

Back

To accommodate customer requirements and drive the planning process.

Front

What factors influence the demand for a firm's products and services?

Back

General business conditions, competitive factors, market trends, and the firm's own plans.

Front

What is demand management?

Back

The function of recognizing and managing all demands for products over short, medium, and long terms.

Front

What are the four major activities included in demand management?

Back

Forecasting, order processing, making delivery promises, and interfacing between manufacturing planning and control and the marketplace.

Front

What is the strategic business plan concerned with?

Back

Overall markets and the direction of the economy over the next 2 to 10 years.

Front

How often are forecasts and plans for production reviewed?

Back

They are usually reviewed quarterly or yearly.

Front

What is the focus of master production scheduling?

Back

Production activity from the present to a few months ahead.

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What are the components of forecasting?

Back

Base demand, seasonal, trend, cyclic, promotion, and irregular.

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What criteria should be considered when selecting a forecasting technique?

Back

Accuracy, forecast time horizon, value of forecasting, data availability, type of data pattern, and forecaster's experience.

Front

What should every forecast include?

Back

An estimate of error, often expressed as a percentage or as a range between maximum and minimum values.