SCM 301 Study Guide - Midterm Guide: Demand Curve, Exponential Smoothing, Management System
Document Summary
15:46: describe the four laws of forecasting 2. Law 2: forecasts for the near term tend to be more accurate. Law 3: forecasts for groups of products or services tend to be more accurate. Law 4: forecasts are no substitute for calculated values. Types of demand: independent demand this is what we forecast! Take a passive role and simply respond to demand: dependent demand: is caused by the demand for another product or service. Often used when data is scarce, not available or irrelevant: quantitative. Historical analogy: use a similar product to predict possible forecasts for the new product. Market surveys: a structured questionnaire submitted to potential customers, often to gauge potential demand. Panel consensus: a qualitative technique that brings experts together to discuss and develop a forecast. Delphi method: individual experts outside the company develop forecasts that are shared among a group and is later modified upon new information shared in the group continues until consensus is reached.
