Chapter 8 - Forcasting

What is the main function of demand management?

• Managing the production of goods

• Promoting products

• Recognizing and managing all demand for products

• Managing inventory

Demand forecasts are often reviewed over the period:

• Daily

• Weekly

• Quarterly or annually

• Every five years

The forecasting component does NOT include:

• Basic Demand

• Season

• Cycle

• Stock Storage

Forecasts are usually numbers for:

• Inventory in the warehouse

• Stock Keeping Units (SKU) and distribution locations

• Quantity of damaged products

• Marketing costs of products

The forecasting process requires the selection of appropriate techniques based on:

• Cost of the technique

• Experience of the forecaster

• Number of workers involved

• Forecasting period

Factors that influence demand include:

• Business and economic conditions

• Current weather

• Political conditions

• Road infrastructure

The component that refers to periodic changes in demand is called:

• Trend

• Cycle

• Season

• Promotion

Why must errors be anticipated in the forecasting process?

• Because forecasts are accurate

• Forecasts cannot be completely accurate

• Errors do not exist in forecasts

• To avoid using irrelevant data

One of the techniques in the forecasting process is:

• Calculating inventory

• Mathematical or statistical techniques

• Increasing the number of products

• Managing employees

Why is supply chain operation forecasting usually done?

• A. To meet daily needs only

• For daily, weekly, or monthly periods

• For quarterly periods only

• Only at the end of the year