BU385 Lecture 3: Ch 3 – Demand Forecasting
Document Summary
Housing affordability has strong/direct effect on the wellbeing of all canadians. There are forecasts about the housing industry. Forecasts are a basic input in the decision processes of ops management. Goal of ops manager: match supply and demand. Need to know what cap is needed to make products and plans. Demand forecast estimate of expected demand during a specified future period; looking at sales of goo/serv, usage of spare parts/supplies. Need to also look at the number of inputs you"ll need for all that. Enables them to make decisions and plans. Need to take into acct difff info. Need to look at current factors or conditions. Relies on one more than the other. Look at past pattern of demand and project it into the future. Uses for demand forecasts: help managers design the system, plan medium term, schedule short term use of system, more than just predicting demand, want to predict variables like revs, costs, prices, gdp.
