Demand Management

Demand Management

1. CPFR: allow trading partners in the supply chain to develop forecast sales

2. External balancing methods

3. Internal balancing methods

   • inventory
   • production flexibility

4. Forecasting: #of product will be purchased when will purchased and where purchased by customers

   • key to success: minimize the error between actual demand and forecasted demand

5. Independent demand: demand for primary item

   • Dependent demand: directly influenced by the demand for the independent item

6. Fluctuations: random variation& trend

7. Simple moving average: simplest to develop method in basic time for forecasting

8. Bias: adding together the error terms for the forecasts results

   • Measures how accurate forecast is compared to actual demand

9. Weighted moving average: assigns a weight to each previous period with higher weights

10. Forecast errors

    • *CFE, MSE, MAD, MAPE

11. Supply Chain Management. A Logistics Perspective, ISBN 978-0-538-47918, 9th edition. Authors: Coyle, Langley, Novack, Gibson, Editorial Cengage

12. JENNIFER A. TORRES

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