ADM 3301 Lecture Notes - Lecture 2: Supply Chain, Quality Management, Human Resources
1 Aug 2018
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Document Summary
Flexibility (they have a lot of options) vs. Answer: new product/services- technology- facilities - processes- capability/capacity- planning/ Scheduling - quality management - human resources- supply chain. News vendor problem: (best buy needs to know how many ps4"s to buy to meet demand) >you have an objective (usually maximize profits, minimize costs, improve market share, etc. ) > decision has to be made before demand occurs. > called new vendor because is similar to a vendor who sells newspapers: Buy too much and you may be left with unsold newspapers, or buy too little, and you will forgo revenue opportunity. > for these type of problems, some forecast of future demand is essential. > enables managers to anticipate the future in order to proactively plan rather than simply reacting to unanticipated changes. > most forecasts take as their basic input a historical data set. From that data set, the forecaster will seek to gauge any trends in demand.
