Capacity Management & Forecasting Flashcards
1
Q
What are lead and lag strategies for capacity management?
A
Lead builds capacity ahead of demand, lag waits for demand to materialize first.
2
Q
What is mean absolute deviation (MAD)?
A
An average of the absolute values of a set of forecast errors.
3
Q
What are seasonal relatives?
A
Factors that capture repeat patterns in data.
4
Q
Name 2 time series techniques used in forecasting.
A
- Moving average
2. Exponential smoothing
5
Q
What does maximax imply in capacity decision making under uncertainty?
A
Find the alternative that maximizes the maximum outcome for every alternative.
6
Q
What are the mechanisms to manage demand in service?
A
Price promotion to develop non-peak demand, reservation systems, offer complementary services.
