Unformatted text preview: n be met in the most efficient and effective manner. It involves activities of: What does DM involve?
What does DM involve?
► It involves: Forecasting of demand volume ► Proactive to meet anticipated demand Timing of demand (synchronizing production, procurement, & logistics with demand) Increasing flexibility of production
► Reactive to unanticipated demand Reducing variability in demand ► Eliminate management practices & policies that increase variability, i.e. internal competition, fear Strategic Subprocesses
► Determine Demand Management Goals and Strategy ► Study SC network and bottleneck
Focus (Ex: Level, Chase, or Mixed Strategies)
Goals (Ex: Cost, Quality, Delivery, Flexibility)
Tradeoffs between Forecast Accuracy and Production Flexibility Determine Forecast Procedures Level of forecast (High/Aggregate/Product Families
Low/Disaggregate/SKU (FG) level)
► New Product vs. Established Product (LifeCycle) Time Frames (Forecast Horizon – week, month, year) Functions (Ex: Operations, Marketing, & Finance) Data Sources & Collection (Internal vs. External) – Quantitative & Qualitative Consistency across the company/suppliers/customers (integration) Strategic Subprocesses
► Plan Information Flow Data Requirements
Determine sources of data
Flow chart the information flow from source to analyst – and then analyst to users of the data Output may have differentiated distri...
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