SCM 303 Chapter 12 PPT

SCM 303 Chapter 12 PPT - Demand Planning, Forecasting, and...

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Michigan State University, 2010 - 1 - Demand Planning, Forecasting, and Management
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Michigan State University, 2010 - 2 - Key Terms Demand planning: a process whereby managers strive to build a “match” between the demands of customers and the productive capacity that the Operations Management system provides. Demand forecasting: a reactive approach in which managers predict demand and make production plans accordingly. Demand management: a proactive approach in which managers attempt to influence either the pattern or consistency of demand.
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Michigan State University, 2010 - 3 - Levels of Demand Planning Strategic level planning: generates long term forecasts of demand (more than one year into the future), that are used to make grand technology or facility plans. Tactical planning: generates forecasts of demand for product families or for particular geographic locations in order to facilitate intermediate (6 to 18 months) capacity and resource plans. Detailed operational forecasts: used to do short term (daily or weekly) product scheduling.
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Michigan State University, 2010 - 4 - Levels of Planning Time Horizon Demand planning units Uses of forecasts and demand management plans Types of decisions involved Strategic: 1-5 years Total dollar or unit sales for a business unit across the sales network - Supply chain network design - Capacity planning (investments or divestments) - Find new sources of supply - Build or sell a plant - Contract for transportation services - Open or close new service location Tactical: 6-18 months Total dollar or unit sales for a product family in a region - Sales and operational planning - Product portfolio planning - Aggregate production plans - Employee hiring and firing - Planned overtime work - Subcontracting - New product launches Operational (short): 1-12 weeks Dollar or unit sales for a given item at a given location - Inventory planning - Purchasing plans - Labor scheduling - Daily production schedule - Daily work schedule - Purchase orders
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Michigan State University, 2010 - 5 - Forecasting Different forecasts for different purposes
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This note was uploaded on 02/09/2012 for the course SCM 303 taught by Professor Bixbycooper during the Fall '09 term at Michigan State University.

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SCM 303 Chapter 12 PPT - Demand Planning, Forecasting, and...

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