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Chapter 10 - Demand forecasting: Building the foundation for resource planning. After studying this chapter you will be able to: Describe the benefits of effective resource planning, explain how the planning horizon affects planning tasks, describe how lead times determine the planning horizon, explain how product and service life cycles can aid in the planning process,. | Chapter 10 Demand Forecasting: Building the Foundation for Resource Planning Learning Objectives Describe the benefits of effective resource planning. Explain how the planning horizon affects planning tasks. Describe how lead times determine the planning horizon. Explain how product and service life cycles can aid in the planning process. Describe the benefits of collaborative planning, forecasting & replenishment Describe the different types of forecasting methods. Compute a causal forecast using simple linear regression. Recognize the components of a time series and appropriate forecasting techniques for each component. Compute forecasts using averages, exponential smoothing, seasonal indexes, and a multiplicative model. Compute measures of forecast accuracy. Describe how enterprise resource planning (ERP) systems benefit businesses. shot 10- Resource Planning - Determining what is needed, and making arrangements to get it, in order to achieve objectives. Contingency Plans – . | Chapter 10 Demand Forecasting: Building the Foundation for Resource Planning Learning Objectives Describe the benefits of effective resource planning. Explain how the planning horizon affects planning tasks. Describe how lead times determine the planning horizon. Explain how product and service life cycles can aid in the planning process. Describe the benefits of collaborative planning, forecasting & replenishment Describe the different types of forecasting methods. Compute a causal forecast using simple linear regression. Recognize the components of a time series and appropriate forecasting techniques for each component. Compute forecasts using averages, exponential smoothing, seasonal indexes, and a multiplicative model. Compute measures of forecast accuracy. Describe how enterprise resource planning (ERP) systems benefit businesses. shot 10- Resource Planning - Determining what is needed, and making arrangements to get it, in order to achieve objectives. Contingency Plans – Alternative or back-up plans to be used if an unexpected event makes the normal plans infeasible. Operations Management Framework 10- Increasing Alternatives Management has more options if it plans ahead. Profitability Enhancement Planning can both reduce costs and increase sales. The further ahead we plan, however, the less we know about future conditions. There is a tradeoff between increasing alternatives and increasing uncertainty. Financial Benefits of Effective Planning 10- Planning Horizon The distance into the future one plans. Looking into the Future: The Planning Horizon 10- A business may have many different planning horizons depending on the resources in question Inventory- Usually very short Employees - Generally pretty short Temps, new hires, etc. Equipment - A little longer Purchasing and installation lead times Facilities - Longest Purchase property, build the building Looking into the Future: The Planning Horizon 10- Life Cycle: A pattern of demand growth
