class 10 - Operations Management Class 1 Class 2 Class 3...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Operations Management Class 1: Introduction to OM and Process Analysis Class 2: Process Design Class 3: Process Analysis Class 4 & 5: Process Analysis Class 6: Process Analysis Class 7: Project Management Class 8 & 9: Variability in processes Class 10: Forecasting
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Content Why do we forecast? How do we forecast? What is a good forecast? 2
Image of page 2
What is forecasting? A statistical estimate of future demand, that can be used to plan current activities Often based on past sales, while considering issues like seasonality, trends in demand, etc 3
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Operations and Information @Wal-Mart Wal-Mart manages one of the world’s largest data warehouses Wal-Mart tracks sales, inventory, shipment for each product at each store Wal-Mart’s demand forecasting system tracks 100,000 products, and predicts which products will be needed in each store The data warehouse is made available to store managers and suppliers 4
Image of page 4
Forecasting is Vital 5 Finance and Accounting: Forecasts provide the basis for budgetary planning and cost control Marketing Relies on sales forecasting to plan new products and promotions Production and Operations Use forecasts to make decisions involving capacity planning, process selection and inventory control Strategic Planning: Forecasting is one of the basis for corporate long-run planning
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Forecasting is Hard Some Famous Forecasts 6 This “telephone” has too many shortcomings to be seriously considered as a means of communication. The device is inherently no value to us. (Western Union internal memo, 1876) The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular? (David Sarnoff’s associates in response to his urgings for investment in the radio in the 1920s) I think there is a world market for maybe five computers.
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern