CHAPTER 11 FORECASTING AND DEMAND PLANNING
|
|
- Violet Wilkins
- 8 years ago
- Views:
Transcription
1 OM CHAPTER 11 FORECASTING AND DEMAND PLANNING DAVID A. COLLIER AND JAMES R. EVANS 1
2 Chapter 11 Learning Outcomes l e a r n i n g o u t c o m e s LO1 Describe the importance of forecasting to the value chain. LO2 Explain basic concepts of forecasting and time series. LO3 Explain how to apply single moving average and exponential smoothing models. LO4 Describe how to apply regression as a forecasting approach. LO5 Explain the role of judgment in forecasting. LO6 Describe how statistical and judgmental forecasting techniques are applied in practice. 2
3 Chapter 11 Forecasting and Demand Planning he demand for rental cars in Florida and other warm climates peaks during college spring break season. Call centers and rental offices are flooded with customers wanting to rent a vehicle. National Car Rental took a unique approach by developing a customer-identification forecasting model, by which it identifies all customers who are young and rent cars only once or twice a year. These demand analysis models allow National to call this target market segment in February, when call volumes are lower, to sign them up again. The proactive strategy is designed to both boost repeat rentals and smooth out the peaks and valleys in call center volumes. What do you think? Think of a pizza delivery franchise located near a college campus. What factors that influence demand do you think should be included in trying to forecast demand for pizzas? 3
4 Chapter 11 Forecasting and Demand Planning Forecasting is the process of projecting the values of one or more variables into the future. Poor forecasting can result in poor inventory and staffing decisions, resulting in part shortages, inadequate customer service, and many customer complaints. 4
5 Chapter 11 Forecasting and Demand Planning Many firms integrate forecasting with value chain and capacity management systems to make better operational decisions. Accurate forecasts are needed throughout the value chain, and are used by all functional areas of the organization, including accounting, finance, marketing, operations, and distribution. 5
6 Chapter 11 Forecasting and Demand Planning One of the biggest problems with forecasting systems is that they are driven by different departmental needs and incentive systems. Demand planning software systems integrate marketing, inventory, sales, operations planning, and financial data. 6
7 Exhibit 11.1 The Need for Forecasts in a Value Chain 7
8 Chapter 11 Forecasting and Demand Planning Basic Concepts in Forecasting The planning horizon is the length of time on which a forecast is based. This spans from short-range forecasts with a planning horizon of under 3 months to long-range forecasts of 1 to 10 years. 8
9 Chapter 11 Forecasting and Demand Planning Basic Concepts in Forecasting A time series is a set of observations measured at successive points in time or over successive periods of time. A time series pattern may have one or more of the following five characteristics: Trend Seasonal patterns Cyclical patterns Random variation (or noise) Irregular (one time) variation 9
10 Exhibit 11.2 Example of Linear and Nonlinear Trend Patterns 10
11 Exhibit 11.3 Seasonal Pattern of Home Natural Gas Usage Seasonal patterns are characterized by repeatable periods of ups and downs over short periods of time. 11
12 Exhibit Extra Trend and Business Cycle Characteristics (each data point is 1 year apart) Cyclical patterns are regular patterns in a data series that take place over long periods of time. 12
13 Chapter 11 Forecasting and Demand Planning Random variation (sometimes called noise) is the unexplained deviation of a time series from a predictable pattern, such as a trend, seasonal, or cyclical pattern. Because of these random variations, forecasts are never 100 percent accurate. 13
14 Chapter 11 Forecasting and Demand Planning Basic Concepts in Forecasting Irregular variation is a one-time variation that is explainable. For example, a hurricane can cause a surge in demand for building materials, food, and water. 14
15 Exhibit 11.4 Call Center Volume 15
16 Exhibit 11.5 Chart of Call Volume There is an increasing trend over the six years, along with seasonal patterns within each year. 16
17 Chapter 11 Forecasting and Demand Planning Forecast error is the difference between the observed value of the time series and the forecast, or A t F t. Mean Square Error (MSE) Σ(A t F t ) MSE = 2 [11.1] T Mean Absolute Deviation Error (MAD) Σ (A t F t ) MAD = [11.2] T Mean Absolute Percentage Error (MAPE) Σ (A t F t )/A t X 100 MAPE = [11.3] T 17
18 Exhibit 11.6 Forecast Error of Example Time Series Data 18
19 Chapter 11 Forecasting and Demand Planning Forecast Errors and Accuracy A major difference between MSE and MAD is that MSE is influenced much more by large forecasts errors than by small errors (because the errors are squared). MAPE is different in that the measurement scale factor is eliminated by dividing the absolute error by the timeseries data value. This makes the measure easier to interpret. The selection of the best measure of forecast accuracy is not a simple matter; indeed, forecasting experts often disagree on which measure should be used. 19
20 Chapter 11 Forecasting and Demand Planning Solved Problem: Develop three-period and fourperiod moving-average forecasts and single exponential smoothing forecasts with α = 0.5. Compute the MAD, MAPE, and MSE for each. Which method provides a better forecast? Period Demand Period Demand
21 Chapter 11 Solved Problem Moving Average Forecasts Period Based on these error metrics (MAD, MSE, MAPE), the 3-month moving average is the best method among the three. 21
22 Chapter 11 Forecasting and Demand Planning Types of Forecasting Approaches Statistical forecasting is based on the assumption that the future will be an extrapolation of the past. Judgmental forecasting relies upon opinions and expertise of people in developing forecasts. 22
23 Chapter 11 Forecasting and Demand Planning Single Moving Average A moving average (MA) forecast is an average of the most recent k observations in a time series. MA methods work best for short planning horizons when there is no major trend, seasonal, or business cycle pattern. As the value of k increases, the forecast reacts slowly to recent changes in the time series data. 23
24 Exhibit 11.7 Summary of 3-Month Moving-Average Forecasts 24
25 Exhibit 11.8 Milk Sales Forecast Error Analysis 25
26 Chapter 11 Forecasting and Demand Planning Single Exponential Smoothing (SES) is a forecasting technique that uses a weighted average of past time-series values to forecast the value of the time series in the next period. The forecast smoothes out the irregular fluctuations in the time series. 26
27 Exhibit 11.9 Summary of Single Exponential Smoothing Milk Sales Forecasts with α =
28 Exhibit Graph of Single Exponential Smoothing Milk Sales Forecasts with α =
29 Chapter 11 Forecasting and Demand Planning Regression analysis is a method for building a statistical model that defines a relationship between a single dependent variable and one or more independent variables, all of which are numerical. Y t = a + bt (11.7) Simple linear regression finds the best values of a and b using the method of least squares. Excel provides a very simple tool to find the bestfitting regression model for a time series by selecting the Add Trendline option from the Chart menu. 29
30 Exhibit Factory Energy Costs 30
31 Exhibit Add Trendline Dialog 31
32 Exhibit Add Trendline Options Tab 32
33 Exhibit Least-Squares Regression Model for Energy Cost Forecasting 33
34 Exhibit Gasoline Sales Data 34
35 Exhibit Chart of Sales versus Time 35
36 Exhibit Multiple Regression Results 36
37 Chapter 11 Forecasting and Demand Planning Judgmental Forecasting When no historical data is available, only judgmental forecasting is possible. The Delphi method consists of forecasting by expert opinion by gathering judgments and opinions of key personnel based on their experience and knowledge of the situation. 37
38 Chapter 11 Forecasting and Demand Planning Judgmental Forecasting Another common approach to gathering data is a survey. Sample sizes are usually much larger than with Delphi, however, and the cost of such surveys can be high. The major reasons for using judgmental methods are: Greater accuracy Ability to incorporate unusual or one-time events The difficultly of obtaining the data necessary for quantitative techniques 38
39 Chapter 11 Forecasting and Demand Planning Forecasting in Practice Managers use a variety of judgmental and quantitative forecasting techniques. Statistical methods alone cannot account for such factors as sales promotions, competitive strategies, unusual economic disturbances, new products, large one-time orders, natural disasters, or labor complications. 39
40 Chapter 11 Forecasting and Demand Planning Forecasting in Practice The first step in developing a practical forecast is to understand the purpose, time horizon, and level of aggregation. Different forecasting methods require different levels of technical ability and understanding of mathematical principles and assumptions. 40
41 Exhibit Example Call Volume Data by Day for BankUSA Case Study Day CALL VOLUME
Production Planning. Chapter 4 Forecasting. Overview. Overview. Chapter 04 Forecasting 1. 7 Steps to a Forecast. What is forecasting?
Chapter 4 Forecasting Production Planning MRP Purchasing Sales Forecast Aggregate Planning Master Production Schedule Production Scheduling Production What is forecasting? Types of forecasts 7 steps of
More informationDemand forecasting & Aggregate planning in a Supply chain. Session Speaker Prof.P.S.Satish
Demand forecasting & Aggregate planning in a Supply chain Session Speaker Prof.P.S.Satish 1 Introduction PEMP-EMM2506 Forecasting provides an estimate of future demand Factors that influence demand and
More informationForecasting the first step in planning. Estimating the future demand for products and services and the necessary resources to produce these outputs
PRODUCTION PLANNING AND CONTROL CHAPTER 2: FORECASTING Forecasting the first step in planning. Estimating the future demand for products and services and the necessary resources to produce these outputs
More informationTheory at a Glance (For IES, GATE, PSU)
1. Forecasting Theory at a Glance (For IES, GATE, PSU) Forecasting means estimation of type, quantity and quality of future works e.g. sales etc. It is a calculated economic analysis. 1. Basic elements
More informationDemand Management Where Practice Meets Theory
Demand Management Where Practice Meets Theory Elliott S. Mandelman 1 Agenda What is Demand Management? Components of Demand Management (Not just statistics) Best Practices Demand Management Performance
More informationForecasting in supply chains
1 Forecasting in supply chains Role of demand forecasting Effective transportation system or supply chain design is predicated on the availability of accurate inputs to the modeling process. One of the
More informationSales Forecasting System for Chemicals Supplying Enterprises
Sales Forecasting System for Chemicals Supplying Enterprises Ma. Del Rocio Castillo E. 1, Ma. Magdalena Chain Palavicini 1, Roberto Del Rio Soto 1 & M. Javier Cruz Gómez 2 1 Facultad de Contaduría y Administración,
More informationCh.3 Demand Forecasting.
Part 3 : Acquisition & Production Support. Ch.3 Demand Forecasting. Edited by Dr. Seung Hyun Lee (Ph.D., CPL) IEMS Research Center, E-mail : lkangsan@iems.co.kr Demand Forecasting. Definition. An estimate
More information2) The three categories of forecasting models are time series, quantitative, and qualitative. 2)
Exam Name TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Regression is always a superior forecasting method to exponential smoothing, so regression should be used
More informationOutline: Demand Forecasting
Outline: Demand Forecasting Given the limited background from the surveys and that Chapter 7 in the book is complex, we will cover less material. The role of forecasting in the chain Characteristics of
More informationModule 6: Introduction to Time Series Forecasting
Using Statistical Data to Make Decisions Module 6: Introduction to Time Series Forecasting Titus Awokuse and Tom Ilvento, University of Delaware, College of Agriculture and Natural Resources, Food and
More informationIndustry Environment and Concepts for Forecasting 1
Table of Contents Industry Environment and Concepts for Forecasting 1 Forecasting Methods Overview...2 Multilevel Forecasting...3 Demand Forecasting...4 Integrating Information...5 Simplifying the Forecast...6
More informationDemand Forecasting LEARNING OBJECTIVES IEEM 517. 1. Understand commonly used forecasting techniques. 2. Learn to evaluate forecasts
IEEM 57 Demand Forecasting LEARNING OBJECTIVES. Understand commonly used forecasting techniques. Learn to evaluate forecasts 3. Learn to choose appropriate forecasting techniques CONTENTS Motivation Forecast
More informationObjectives of Chapters 7,8
Objectives of Chapters 7,8 Planning Demand and Supply in a SC: (Ch7, 8, 9) Ch7 Describes methodologies that can be used to forecast future demand based on historical data. Ch8 Describes the aggregate planning
More informationSlides Prepared by JOHN S. LOUCKS St. Edward s University
s Prepared by JOHN S. LOUCKS St. Edward s University 2002 South-Western/Thomson Learning 1 Chapter 18 Forecasting Time Series and Time Series Methods Components of a Time Series Smoothing Methods Trend
More informationExponential Smoothing with Trend. As we move toward medium-range forecasts, trend becomes more important.
Exponential Smoothing with Trend As we move toward medium-range forecasts, trend becomes more important. Incorporating a trend component into exponentially smoothed forecasts is called double exponential
More informationTime series forecasting
Time series forecasting 1 The latest version of this document and related examples are found in http://myy.haaga-helia.fi/~taaak/q Time series forecasting The objective of time series methods is to discover
More informationDemand Forecasting When a product is produced for a market, the demand occurs in the future. The production planning cannot be accomplished unless
Demand Forecasting When a product is produced for a market, the demand occurs in the future. The production planning cannot be accomplished unless the volume of the demand known. The success of the business
More informationTime series Forecasting using Holt-Winters Exponential Smoothing
Time series Forecasting using Holt-Winters Exponential Smoothing Prajakta S. Kalekar(04329008) Kanwal Rekhi School of Information Technology Under the guidance of Prof. Bernard December 6, 2004 Abstract
More informationOutline. Role of Forecasting. Characteristics of Forecasts. Logistics and Supply Chain Management. Demand Forecasting
Logistics and Supply Chain Management Demand Forecasting 1 Outline The role of forecasting in a supply chain Characteristics ti of forecasts Components of forecasts and forecasting methods Basic approach
More informationA Decision-Support System for New Product Sales Forecasting
A Decision-Support System for New Product Sales Forecasting Ching-Chin Chern, Ka Ieng Ao Ieong, Ling-Ling Wu, and Ling-Chieh Kung Department of Information Management, NTU, Taipei, Taiwan chern@im.ntu.edu.tw,
More informationA Primer on Forecasting Business Performance
A Primer on Forecasting Business Performance There are two common approaches to forecasting: qualitative and quantitative. Qualitative forecasting methods are important when historical data is not available.
More informationWeek TSX Index 1 8480 2 8470 3 8475 4 8510 5 8500 6 8480
1) The S & P/TSX Composite Index is based on common stock prices of a group of Canadian stocks. The weekly close level of the TSX for 6 weeks are shown: Week TSX Index 1 8480 2 8470 3 8475 4 8510 5 8500
More informationForecasting Methods. What is forecasting? Why is forecasting important? How can we evaluate a future demand? How do we make mistakes?
Forecasting Methods What is forecasting? Why is forecasting important? How can we evaluate a future demand? How do we make mistakes? Prod - Forecasting Methods Contents. FRAMEWORK OF PLANNING DECISIONS....
More informationSimple Methods and Procedures Used in Forecasting
Simple Methods and Procedures Used in Forecasting The project prepared by : Sven Gingelmaier Michael Richter Under direction of the Maria Jadamus-Hacura What Is Forecasting? Prediction of future events
More informationSmoothing methods. Marzena Narodzonek-Karpowska. Prof. Dr. W. Toporowski Institut für Marketing & Handel Abteilung Handel
Smoothing methods Marzena Narodzonek-Karpowska Prof. Dr. W. Toporowski Institut für Marketing & Handel Abteilung Handel What Is Forecasting? Process of predicting a future event Underlying basis of all
More informationTime Series and Forecasting
Chapter 22 Page 1 Time Series and Forecasting A time series is a sequence of observations of a random variable. Hence, it is a stochastic process. Examples include the monthly demand for a product, the
More informationIndian School of Business Forecasting Sales for Dairy Products
Indian School of Business Forecasting Sales for Dairy Products Contents EXECUTIVE SUMMARY... 3 Data Analysis... 3 Forecast Horizon:... 4 Forecasting Models:... 4 Fresh milk - AmulTaaza (500 ml)... 4 Dahi/
More informationINDUSTRIAL STATISTICS AND OPERATIONAL MANAGEMENT
INDUSTRIAL STATISTICS AND OPERATIONAL MANAGEMENT 6 : FORECASTING TECHNIQUES Dr. Ravi Mahendra Gor Associate Dean ICFAI Business School ICFAI HOuse, Nr. GNFC INFO Tower S. G. Road Bodakdev Ahmedabad-380054
More informationHow To Plan A Pressure Container Factory
ScienceAsia 27 (2) : 27-278 Demand Forecasting and Production Planning for Highly Seasonal Demand Situations: Case Study of a Pressure Container Factory Pisal Yenradee a,*, Anulark Pinnoi b and Amnaj Charoenthavornying
More informationOUTLIER ANALYSIS. Data Mining 1
OUTLIER ANALYSIS Data Mining 1 What Are Outliers? Outlier: A data object that deviates significantly from the normal objects as if it were generated by a different mechanism Ex.: Unusual credit card purchase,
More informationQAD Enterprise Applications 2012 Enterprise Edition. Training Guide Demand Management 6.1 Domain Knowledge
QAD Enterprise Applications 2012 Enterprise Edition Training Guide Demand Management 6.1 Domain Knowledge 70-3250-6.1 QAD Enterprise Applications 2012 February 2012 This document contains proprietary information
More informationTIME SERIES ANALYSIS & FORECASTING
CHAPTER 19 TIME SERIES ANALYSIS & FORECASTING Basic Concepts 1. Time Series Analysis BASIC CONCEPTS AND FORMULA The term Time Series means a set of observations concurring any activity against different
More informationIDENTIFICATION OF DEMAND FORECASTING MODEL CONSIDERING KEY FACTORS IN THE CONTEXT OF HEALTHCARE PRODUCTS
IDENTIFICATION OF DEMAND FORECASTING MODEL CONSIDERING KEY FACTORS IN THE CONTEXT OF HEALTHCARE PRODUCTS Sushanta Sengupta 1, Ruma Datta 2 1 Tata Consultancy Services Limited, Kolkata 2 Netaji Subhash
More informationUsing Excel (Microsoft Office 2007 Version) for Graphical Analysis of Data
Using Excel (Microsoft Office 2007 Version) for Graphical Analysis of Data Introduction In several upcoming labs, a primary goal will be to determine the mathematical relationship between two variable
More informationA COMPARISON OF REGRESSION MODELS FOR FORECASTING A CUMULATIVE VARIABLE
A COMPARISON OF REGRESSION MODELS FOR FORECASTING A CUMULATIVE VARIABLE Joanne S. Utley, School of Business and Economics, North Carolina A&T State University, Greensboro, NC 27411, (336)-334-7656 (ext.
More informationForecasting DISCUSSION QUESTIONS
4 C H A P T E R Forecasting DISCUSSION QUESTIONS 1. Qualitative models incorporate subjective factors into the forecasting model. Qualitative models are useful when subjective factors are important. When
More informationCB Predictor 1.6. User Manual
CB Predictor 1.6 User Manual This manual, and the software described in it, are furnished under license and may only be used or copied in accordance with the terms of the license agreement. Information
More informationSection A. Index. Section A. Planning, Budgeting and Forecasting Section A.2 Forecasting techniques... 1. Page 1 of 11. EduPristine CMA - Part I
Index Section A. Planning, Budgeting and Forecasting Section A.2 Forecasting techniques... 1 EduPristine CMA - Part I Page 1 of 11 Section A. Planning, Budgeting and Forecasting Section A.2 Forecasting
More informationForecasting. Sales and Revenue Forecasting
Forecasting To plan, managers must make assumptions about future events. But unlike Harry Potter and his friends, planners cannot simply look into a crystal ball or wave a wand. Instead, they must develop
More informationThe Strategic Role of Forecasting in Supply Chain Management and TQM
Forecasting A forecast is a prediction of what will occur in the future. Meteorologists forecast the weather, sportscasters and gamblers predict the winners of football games, and companies attempt to
More informationModelling and Forecasting Packaged Food Product Sales Using Mathematical Programming
Modelling and Forecasting Packaged Food Product Sales Using Mathematical Programming Saurabh Gupta 1, Nishant Kumar 2 saurabhgupta2dams@gmail.com Abstract Sales forecasting is one of the most common phenomena
More informationChapter 2 Maintenance Strategic and Capacity Planning
Chapter 2 Maintenance Strategic and Capacity Planning 2.1 Introduction Planning is one of the major and important functions for effective management. It helps in achieving goals and objectives in the most
More informationCHAPTER 6 FINANCIAL FORECASTING
TUTORIAL NOTES CHAPTER 6 FINANCIAL FORECASTING 6.1 INTRODUCTION Forecasting represents an integral part of any planning process that is undertaken by all firms. Firms must make decisions today that will
More information2. What is the general linear model to be used to model linear trend? (Write out the model) = + + + or
Simple and Multiple Regression Analysis Example: Explore the relationships among Month, Adv.$ and Sales $: 1. Prepare a scatter plot of these data. The scatter plots for Adv.$ versus Sales, and Month versus
More informationMICROSOFT EXCEL 2007-2010 FORECASTING AND DATA ANALYSIS
MICROSOFT EXCEL 2007-2010 FORECASTING AND DATA ANALYSIS Contents NOTE Unless otherwise stated, screenshots in this book were taken using Excel 2007 with a blue colour scheme and running on Windows Vista.
More informationCH2404 Process Economics Unit III www.msubbu.in. Forecasting Sales. www.msubbu.in. Dr. M. Subramanian
CH2404 Process Economics Unit III Forecasting Sales Dr. M. Subramanian Associate Professor Department of Chemical Engineering Sri Sivasubramaniya Nadar College of Engineering Kalavakkam 603 110, Kanchipuram(Dist)
More informationForecasting methods applied to engineering management
Forecasting methods applied to engineering management Áron Szász-Gábor Abstract. This paper presents arguments for the usefulness of a simple forecasting application package for sustaining operational
More informationIntroduction to time series analysis
Introduction to time series analysis Margherita Gerolimetto November 3, 2010 1 What is a time series? A time series is a collection of observations ordered following a parameter that for us is time. Examples
More informationSimple Predictive Analytics Curtis Seare
Using Excel to Solve Business Problems: Simple Predictive Analytics Curtis Seare Copyright: Vault Analytics July 2010 Contents Section I: Background Information Why use Predictive Analytics? How to use
More informationPromotional Forecast Demonstration
Exhibit 2: Promotional Forecast Demonstration Consider the problem of forecasting for a proposed promotion that will start in December 1997 and continues beyond the forecast horizon. Assume that the promotion
More informationUniwersytet Ekonomiczny
Uniwersytet Ekonomiczny George Matysiak Introduction to modelling & forecasting December 15 th, 2014 Agenda Modelling and forecasting - Models Approaches towards modelling and forecasting Forecasting commercial
More information8 given situation. 5. Students will discuss performance management and determine appropriate performance measures for an
PRESCRIPTION: 632 OPERATIONS MANAGEMENT This prescription replaces 232 Operations Management. ELECTIVE PRESCRIPTION LEVEL 6 CREDIT 20 VERSION 1 INTRODUCED 2007 AIM PREREQUISITES Students will understand
More informationINCREASING FORECASTING ACCURACY OF TREND DEMAND BY NON-LINEAR OPTIMIZATION OF THE SMOOTHING CONSTANT
58 INCREASING FORECASTING ACCURACY OF TREND DEMAND BY NON-LINEAR OPTIMIZATION OF THE SMOOTHING CONSTANT Sudipa Sarker 1 * and Mahbub Hossain 2 1 Department of Industrial and Production Engineering Bangladesh
More informationTIME SERIES ANALYSIS AS A MEANS OF MANAGERIA DECISION MAKING IN MANUFACTURING INDUSTRY
TIME SERIES ANALYSIS AS A MEANS OF MANAGERIA DECISION MAKING IN MANUFACTURING INDUSTRY 1 Kuranga L.J, 2 Ishola James.A, and 3 Ibrahim Hamzat G. 1 Department of Statistics Kwara State Polytechnic Ilorin,Nigeria
More informationMGT 267 PROJECT. Forecasting the United States Retail Sales of the Pharmacies and Drug Stores. Done by: Shunwei Wang & Mohammad Zainal
MGT 267 PROJECT Forecasting the United States Retail Sales of the Pharmacies and Drug Stores Done by: Shunwei Wang & Mohammad Zainal Dec. 2002 The retail sale (Million) ABSTRACT The present study aims
More informationFOCUS FORECASTING IN SUPPLY CHAIN: THE CASE STUDY OF FAST MOVING CONSUMER GOODS COMPANY IN SERBIA
www.sjm06.com Serbian Journal of Management 10 (1) (2015) 3-17 Serbian Journal of Management FOCUS FORECASTING IN SUPPLY CHAIN: THE CASE STUDY OF FAST MOVING CONSUMER GOODS COMPANY IN SERBIA Abstract Zoran
More informationA Regional Demand Forecasting Study for Transportation Fuels in Turkey
A al Demand Forecasting Study for Transportation Fuels in Turkey by Özlem Atalay a, Gürkan Kumbaroğlu Bogazici University, Department of Industrial Engineering, 34342, Bebek, Istanbul, Turkey, Phone :
More informationNTC Project: S01-PH10 (formerly I01-P10) 1 Forecasting Women s Apparel Sales Using Mathematical Modeling
1 Forecasting Women s Apparel Sales Using Mathematical Modeling Celia Frank* 1, Balaji Vemulapalli 1, Les M. Sztandera 2, Amar Raheja 3 1 School of Textiles and Materials Technology 2 Computer Information
More informationCTL.SC1x -Supply Chain & Logistics Fundamentals. Time Series Analysis. MIT Center for Transportation & Logistics
CTL.SC1x -Supply Chain & Logistics Fundamentals Time Series Analysis MIT Center for Transportation & Logistics Demand Sales By Month What do you notice? 2 Demand Sales by Week 3 Demand Sales by Day 4 Demand
More information15. How would you show your understanding of the term system perspective? BTL 3
Year and Semester FIRST YEAR II SEMESTER (EVEN) Subject Code and Name BA7201 OPERATIONS MANAGEMENT Faculty Name 1) Mrs.L.SUJATHA ASST.PROF (S.G) 2) Mr. K.GURU ASST.PROF (OG) Q.No Unit I Part A BT Level
More informationCALL VOLUME FORECASTING FOR SERVICE DESKS
CALL VOLUME FORECASTING FOR SERVICE DESKS Krishna Murthy Dasari Satyam Computer Services Ltd. This paper discusses the practical role of forecasting for Service Desk call volumes. Although there are many
More informationBaseline Forecasting With Exponential Smoothing Models
Baseline Forecasting With Exponential Smoothing Models By Hans Levenbach, PhD., Executive Director CPDF Training and Certification Program, URL: www.cpdftraining.org Prediction is very difficult, especially
More informationIdentification of Demand through Statistical Distribution Modeling for Improved Demand Forecasting
Identification of Demand through Statistical Distribution Modeling for Improved Demand Forecasting Murphy Choy Michelle L.F. Cheong School of Information Systems, Singapore Management University, 80, Stamford
More informationForecasting Methods / Métodos de Previsão Week 1
Forecasting Methods / Métodos de Previsão Week 1 ISCTE - IUL, Gestão, Econ, Fin, Contab. Diana Aldea Mendes diana.mendes@iscte.pt February 3, 2011 DMQ, ISCTE-IUL (diana.mendes@iscte.pt) Forecasting Methods
More informationAP Physics 1 and 2 Lab Investigations
AP Physics 1 and 2 Lab Investigations Student Guide to Data Analysis New York, NY. College Board, Advanced Placement, Advanced Placement Program, AP, AP Central, and the acorn logo are registered trademarks
More informationOperations Research in BASF's Supply Chain Operations. IFORS, 17 July 2014
Operations Research in BASF's Supply Chain Operations IFORS, 17 July 2014 Information Services & Supply Chain Operations is the business solutions provider for BASF Group Competence Center Information
More informationDEMAND FORECASTING METHODS
DEMAND FORECASTING METHODS Taken from: Demand Forecasting: Evidence-based Methods by J. Scott Armstrong and Kesten C. Green METHODS THAT RELY ON QUALITATIVE DATA UNAIDED JUDGEMENT It is common practice
More informationComparative Study of Demand Forecast Accuracy for Healthcare Products Using Linear and Non Linear Regression
International Journal of Business and Management Invention ISSN (Online): 2319 8028, ISSN (Print): 2319 801X Volume 3 Issue 5ǁ May. 2014 ǁ PP.01-10 Comparative Study of Demand Forecast Accuracy for Healthcare
More informationCollaborative Forecasting
Collaborative Forecasting By Harpal Singh What is Collaborative Forecasting? Collaborative forecasting is the process for collecting and reconciling the information from diverse sources inside and outside
More informationTime-Series Forecasting and Index Numbers
CHAPTER 15 Time-Series Forecasting and Index Numbers LEARNING OBJECTIVES This chapter discusses the general use of forecasting in business, several tools that are available for making business forecasts,
More informationFORECASTING. Operations Management
2013 FORECASTING Brad Fink CIT 492 Operations Management Executive Summary Woodlawn hospital needs to forecast type A blood so there is no shortage for the week of 12 October, to correctly forecast, a
More informationAgenda. Managing Uncertainty in the Supply Chain. The Economic Order Quantity. Classic inventory theory
Agenda Managing Uncertainty in the Supply Chain TIØ485 Produkjons- og nettverksøkonomi Lecture 3 Classic Inventory models Economic Order Quantity (aka Economic Lot Size) The (s,s) Inventory Policy Managing
More informationFORECASTING MODEL FOR THE PRODUCTION AND CONSUMPTION OF COTTON FIBER VERSUS POLYESTER
1 FORECASTING MODEL FOR THE PRODUCTION AND CONSUMPTION OF COTTON FIBER VERSUS POLYESTER Elisa Mauro Gomes Otávio Lemos de Melo Celidonio Daniel Latorraca Ferreira Leandro Gustavo Alves Johnnattann Pimenta
More informationProduction Management
Production Management Chwen-Tzeng Su, PhD Professor, Department of Industrial Management National Yunlin University of Science & Technology Touliu, Yunlin, Taiwan 640, R.O.C. E-mail: suct@yuntech.edu.tw
More informationCHAPTER 10 CAPACITY MANAGEMENT DAVID A. COLLIER AND JAMES R. EVANS. OM, Ch. 10 Capacity Management 2009 South-Western, a part of Cengage Learning
OM CHAPTER 10 CAPACITY MANAGEMENT DAVID A. COLLIER AND JAMES R. EVANS 1 Chapter 10 Learning Outcomes l e a r n i n g o u t c o m e s LO1 Explain the concept of capacity. LO2 LO3 LO4 LO5 Describe how to
More informationDETERMINANTS OF GROCERY STORE SALES: A MULTIPLE REGRESSION APPROACH
ABSTRACT DETERMINANTS OF GROCERY STORE SALES: A MULTIPLE REGRESSION APPROACH by Larry R. Woodward University of Mary Hardin-Baylor 900 College St. Belton, Texas 76513 lwoodward@umhb.edu 254-295-4648 Grocery
More informationGLOBAL COMPANY PROFILE Walt Disney Parks & Resorts: Forecasting Provides a Competitive Advantage for Disney
Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. GLOBAL COMPANY PROFILE Walt Disney
More informationTime Series Forecasting Techniques
03-Mentzer (Sales).qxd 11/2/2004 11:33 AM Page 73 3 Time Series Forecasting Techniques Back in the 1970s, we were working with a company in the major home appliance industry. In an interview, the person
More information2014 Forecasting Benchmark Survey. Itron, Inc. 12348 High Bluff Drive, Suite 210 San Diego, CA 92130-2650 858-724-2620
Itron, Inc. 12348 High Bluff Drive, Suite 210 San Diego, CA 92130-2650 858-724-2620 September 16, 2014 For the third year, Itron surveyed energy forecasters across North America with the goal of obtaining
More informationThe Effects of Start Prices on the Performance of the Certainty Equivalent Pricing Policy
BMI Paper The Effects of Start Prices on the Performance of the Certainty Equivalent Pricing Policy Faculty of Sciences VU University Amsterdam De Boelelaan 1081 1081 HV Amsterdam Netherlands Author: R.D.R.
More informationNAVAL POSTGRADUATE SCHOOL Monterey, California THESIS
NAVAL POSTGRADUATE SCHOOL Monterey, California THESIS IMPROVING THE TURKISH NAVY REQUIREMENTS DETERMINATION PROCESS: AN ASSESSMENT OF DEMAND FORECASTING METHODS FOR WEAPON SYSTEM ITEMS by Naim Teoman Unlu
More informationA Quantitative Approach to Commercial Damages. Applying Statistics to the Measurement of Lost Profits + Website
Brochure More information from http://www.researchandmarkets.com/reports/2212877/ A Quantitative Approach to Commercial Damages. Applying Statistics to the Measurement of Lost Profits + Website Description:
More informationForecasts of future demand are essential for making supply chain decisions. In this
CHAPTER? DEMAND FORECASTING IN A S UPPLY CHAIN ~ Learning Objectives After reading this chapter, you will be able to: 1. Understand the role of forecasting for both an enterprise and a supply chain. 2.
More informationCross Validation. Dr. Thomas Jensen Expedia.com
Cross Validation Dr. Thomas Jensen Expedia.com About Me PhD from ETH Used to be a statistician at Link, now Senior Business Analyst at Expedia Manage a database with 720,000 Hotels that are not on contract
More informationSECTION TWO: MAJOR REVENUE SOURCES
SECTION TWO: MAJOR REVENUE SOURCES 57 Major Revenue Sources This section on major revenue sources was developed as a reference for the primary revenues collected. Tracking, forecasting, and reporting revenue
More informationSales and operations planning (SOP) Demand forecasting
ing, introduction Sales and operations planning (SOP) forecasting To balance supply with demand and synchronize all operational plans Capture demand data forecasting Balancing of supply, demand, and budgets.
More informationStudying Material Inventory Management for Sock Production Factory
Studying Inventory Management for Sock Production Factory Pattanapong Ariyasit*, Nattaphon Supawatcharaphorn** Industrial Engineering Department, Faculty of Engineering, Sripatum University E-mail: pattanapong.ar@spu.ac.th*,
More informationA Comparative Study of the Pickup Method and its Variations Using a Simulated Hotel Reservation Data
A Comparative Study of the Pickup Method and its Variations Using a Simulated Hotel Reservation Data Athanasius Zakhary, Neamat El Gayar Faculty of Computers and Information Cairo University, Giza, Egypt
More informationAnalysis of Various Forecasting Approaches for Linear Supply Chains based on Different Demand Data Transformations
Institute of Information Systems University of Bern Working Paper No 196 source: https://doi.org/10.7892/boris.58047 downloaded: 16.11.2015 Analysis of Various Forecasting Approaches for Linear Supply
More informationForecasting Framework for Inventory and Sales of Short Life Span Products
Forecasting Framework for Inventory and Sales of Short Life Span Products Master Thesis Graduate student: Astrid Suryapranata Graduation committee: Professor: Prof. dr. ir. M.P.C. Weijnen Supervisors:
More informationC H A P T E R Forecasting statistical fore- casting methods judgmental forecasting methods 27-1
27 C H A P T E R Forecasting H ow much will the economy grow over the next year? Where is the stock market headed? What about interest rates? How will consumer tastes be changing? What will be the hot
More informationUsing Excel for Handling, Graphing, and Analyzing Scientific Data:
Using Excel for Handling, Graphing, and Analyzing Scientific Data: A Resource for Science and Mathematics Students Scott A. Sinex Barbara A. Gage Department of Physical Sciences and Engineering Prince
More informationManufacturing Planning and Control for Supp Chain Management
Manufacturing Planning and Control for Supp Chain Management Sixth Edition F. Robert Jacobs Indiana University William L. Berry The Ohio State University (Emeritus) D. Clay Whybark University of North
More informationImproving Demand Forecasting
Improving Demand Forecasting 2 nd July 2013 John Tansley - CACI Overview The ideal forecasting process: Efficiency, transparency, accuracy Managing and understanding uncertainty: Limits to forecast accuracy,
More informationEquations for Inventory Management
Equations for Inventory Management Chapter 1 Stocks and inventories Empirical observation for the amount of stock held in a number of locations: N 2 AS(N 2 ) = AS(N 1 ) N 1 where: N 2 = number of planned
More informationProduct Documentation SAP Business ByDesign 1302. Supply Chain Planning and Control
Product Documentation PUBLIC Supply Chain Planning and Control Table Of Contents 1 Supply Chain Planning and Control.... 6 2 Business Background... 8 2.1 Demand Planning... 8 2.2 Forecasting... 10 2.3
More informationSchool of Management and Languages Capacity Planning
School of Management and Languages Capacity Planning Dr Neil Towers 1 Learning Objectives a. To understand Capacity Planning and Control b. To manage the supply chain capabilities effectively Dr Neil Towers
More informationIBM SPSS Forecasting 22
IBM SPSS Forecasting 22 Note Before using this information and the product it supports, read the information in Notices on page 33. Product Information This edition applies to version 22, release 0, modification
More information