33:799:301 Lecture Notes - Lecture 5: Three Steps, Qualitative Economics, Delphi Method
5 Mar 2017
School
Department
Course
Professor
Document Summary
Forecasting and demand planning are the key building blocks from which all supply chain planning activities are derived. Companies work to find ways to better match supply and demand - leads achieve optimal levels of cost, quality, and customer service to remain competitive in the marketplace. Forecast - to predict a future condition or occurrence; calculate in advance. Demand - the state of being wanted or sought for purchase or use. Forecasting - the process of estimating future demand for products and services so that they can be available in appropriate quantities in time to meet the customer"s requirements. Demand planning - the process of combining statistical forecasting and judgment to construct demand estimates for products or services. A forecast is an estimate of future demand and provides the basis for supply planning decisions as well as company financial investment decisions. Independent demand - demand for final products affected by trends, seasonal patterns, and general market conditions.
