1. The three types of demand forecasting models and their functions is judgmental forecasting-it is appropriate to use this demand in situations where there are limited or no historical data, such as with a new product introduction. Time series forecasting-it is appropriate to use this demand when the future forecast depends solely on the past demand to make determination. Cause-and-effect (also referred to as associate) forecasting- it is appropriate to use when the assumption that one or more factors are related to demand and that the relationship between cause and effect can be used to estimate future demand. 2. Benchmarking is referred to a process that continuously identifies, understands, and adapts outstanding processes found inside and outside an organization. Well run organizations benchmark not only against competitors (where possible) but against best-in-class organizations as well. 3.
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This note was uploaded on 10/06/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at University of Arkansas – Fort Smith.