Demand Management UNIT 4

Demand Management UNIT 4

1. WHAT IS A LOGISTICS DEMAND FORECAST?

   • FORECASTING LOGISTICS DEMAND MEANS DOING A PRIOR STUDY, ESPECIALLY IN THE STOCK AND SALES SECTOR, TO ANTICIPATE WHAT WILL BE NEEDED IN THE SUPPLY CHAIN.

2. FUNCTIONS AND ELEMENTS OF FORECASTS

   • -INCREASE CUSTOMER SATISFACTION. -REDUCE POTENTIAL BOTTLENECKS. -OPTIMIZE OPERATIONS. -REDUCE COSTS AND WASTE.

3. DESIGN AND INTERPRETATION OF FORECASTS

   • FORECASTING MODELS ARE STATISTICAL MODELS FOR FORECASTING THE FUTURE. THEY ARE USED TO DETECT FUTURE SITUATIONS AND MAKE PROJECTIONS BASED ON THE INFORMATION ANALYZED.

4. DEMAND FORECASTING SYSTEMS AND THEIR CHARACTERISTICS

   • REALESE MANAGEMENT
     • The main purpose of Release Management is to ensure that new services and those that have already been modified since their previous release can be started up as efficiently as possible.
   • DEMAND DELIVERY?
     • It is the one offered by companies to make home deliveries of the products that customers buy online or by telephone. This type of delivery is known as last mile
   • FORECASTING APPROACHES
     • QUANTITATIVE
       • use a variety of mathematical models that rely on historical data or causal variables to forecast demand.
     • QUALITATIVE
       • incorporate factors such as intuition, emotions, personal experiences, and the decision-maker's value system to arrive at the forecast

5. DEMAND FORECASTING SYSTEMS

   • Canopy.io: It's a tool that integrates, analyzes and even constantly tracks every data point in your revenue team, so you can make the right decisions

6. DEMAND PLANNIG

   • Is a supply chain management process that allows a company to project demand into the future and successfully customize the company's production, whether products or services, according to those projections.
   • DEMAND DEPENDENT
     • includes the materials or intermediate products we need to produce the amount of final product being demanded.
   • DEMAND INDEPENDENT
     • :Products or goods that do not depend on another good to be sold (they are not sub-parts or sub-assemblies) have independent demand.

7. MRP

   • Is a material requirements planning software to manage a company's operations in terms of production activities, warehousing, distribution and delivery of orders at the right time and place to meet customer demand.
   • ADVANTAGES
     • One of the benefits of MRP for the logistics company is to be able to have real-time supply chain information. This means making decisions quickly in case of any unexpected situation so that the product arrives from the production center to the destination in the estimated time.
   • DISADVANTAGES
     • For both large companies and SMEs, it should be noted that these programs do not always take into account the capacity of the personnel available for the distribution of tasks. They also do not allow the management of all logistical aspects of the business from a single interface.

8. BACKORDER

   • Backorders are orders that are placed and processed even though the products ordered are not in stock in the warehouse but knowing that our supplier will be able to respond quickly enough to get the product to the customer on time.

9. SAFETY STOCK

   • Stock inventory usually consists of cycle stocks, or the inventory that is expected to be sold within a given period, and safety stock.

10. LEAD TIME

    • The lead time refers to the time that elapses from when a purchase order is generated from a supplier until the merchandise from that supplier is delivered to the customer (it can be an individual or a company store). Managing this concept is essential for the organization of all processes throughout the entire supply chain.

11. BILL OF MATERIALS

    • also known as a product structure, is a list of all the items needed to build, manufacture, or repair a product or service. A bill of materials functions as a centralized source that contains all the information needed to manufacture a product from the raw materials stage.

12. RECOGNIZE THE USE SPECIALIZED SOFTWARE

    • The importance of new technologies and their growing presence in all areas of our life makes it necessary to have a good management software to help us manage our company effectively and thus achieve competitive advantages in the market.

13. DEMAND FORECAST

    • Process of using predictive analysis of historical data to estimate and predict future customer demand for a product or service.
    • QUALITATIVE PREDICTION
      • When there is not a lot of data to work with, such as when a company is new or a product is launched on the market, qualitative forecasting approaches are used. In this case, other information, such as expert opinion, market research and benchmarking, is used to produce quantitative estimates of demand.
    • TIME SERIES ANALYSIS
      • When historical data for a product or product line is available and patterns are evident, organizations often use the technique of time series analysis for demand forecasting. A time series analysis can help detect seasonal variations in demand, cyclical patterns, and major sales trends.

14. Advantages of Demand Forecasting

    • Prepare the budget Plan and schedule production inventory storage Develop a Pricing Strategy