MGT 3200 CH 10 Study Guide

MGT 3200 CH 10 Study Guide - Chapter 9 9-9. Interpret the...

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Chapter 9 9-9. Interpret the tracking signal for a forecast It shows if the company is over or under forecasting it demand. It is over (+3 Stand. Dev) or under (-3 Stand. Dev) forecasted. We want a random patter within +or- 3 9-10. List and describe steps in a forecasting approach Quantitative model à Start with a base forecast developed from a quantitative model Qualitative model à Supplement this base model with qualitative input Consensus à Gain consensus among the entire organization on this forecast so that they are all planning to the same number Forecast error à Monitor error to both look for improvement opportunities (for the forecast process) and evaluate the need for safety stock inventory. 9-11. Recognize forecast challenges 1. Forecasts are always wrong à companies constantly have to tune the process up so it gets as accurate as possible. Because of this businesses have to ensure a safety stock (is better to more inventory than loosing sales) 2. Forecast (expected sales) à reflects what businesses expect to sell Sales/financial plan (desired sales) à reflects what businesses desire to sell
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This document was uploaded on 10/26/2011 for the course MGT 3200 at Kennesaw.

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MGT 3200 CH 10 Study Guide - Chapter 9 9-9. Interpret the...

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