Exam 3 study guide - MSC 303 Exam 3 Study Guide Demand...

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MSC 303 Exam 3 Study Guide Demand planning is a process whereby managers strive to build a “match” between the demands of customers and the productive capacity that operations within the business enterprise provide. Demand planning drives almost all other activities in Operations Management. Demand forecasting is essentially a reactive approach in which managers predict demand and make operational plans accordingly. On the other hand, Demand management, the other part of demand planning, is a proactive approach in which managers attempt to influence either the pattern or consistency of demand. Usually demand management involves the use of pricing and promotional activities. Forecasting is a process that converts data into predictions of future events.
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-Below is the 5-step process forecasting process to help to generate forecasts that are usable, timely, and accurate. 1. Identify the users and decision-making processes that the forecast will support. The forecasting process needs to be designed with the following users’ characteristics and needs in mind. Time Horizon
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This note was uploaded on 08/11/2009 for the course MSC 303 taught by Professor Cooper during the Spring '08 term at Michigan State University.

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Exam 3 study guide - MSC 303 Exam 3 Study Guide Demand...

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