BU385 Chapter Notes - Chapter 3: Explained Variation, Standard Deviation, Mean Squared Error
Document Summary
Replenishment (cpfr): customer company makes with the supplier, allowing both sides to give inputs expectation of customer for increased quantities a promotion, capacity limitations of the supplier, forecast such as during etc. Elements of a good forecast: forecasting horizon must be long enough so its results can be used, degree of accuracy of the forecast should be stated, the forecasting method chosen should be reliable; work consistently. 4) forecast should be expressed in meaningful units use dollars for financial planning, units for ops: all functions of an organization should be using the same forecast. 6) the forecasting technique should be simple to understand and use. 2013. sales/shipments, which will be different if there were stock-outs). Identify assumptions: prepare the forecast, monitor the forecast: re-examine parameters of technique or use different ones if needed. Overview of demand forecasting by forecasting horizon forecasting lt demand: uses annual data for the next five years (for ex.
