Cours 2

Question 1

What is the independent demand?

Answer 1

• Finished products and spare parts.
• It is based on market demand.
• Forecasting is required.

Question 2

What is the dependent demand?

Answer 2

• They are raw materials and components used to produce the finished goods.
• They are based on the demand for finished goods.
• These are calculations, rather than forecasting methods.
• No forecasting is required.

Question 3

What are the types of qualitative forecasting methods?

Answer 3

• Expert panel
• Delphi method
• Consomuer market survey
• Historical analogies

Question 4

When do we use the qualitative forecasting method?

Answer 4

• With new products
• When historical data is unreliable.
• To validate a quantitative model.

Question 5

What is the type of quantitative forecasting method?

Answer 5

• Time series (monthly sales of the previous year)
• Associative models (stock market or economic indexes, sales of complementary products, etc.)

Question 6

What is the process of the forecasting methodology?

Answer 6

1) Problem definition
2) Data collection
3) Exploratory data analysis
4) CHoice of models and calibration parameters.
5) Use and monitoring

Question 7

What are the demand components?

Answer 7

• Random or residual
• Trend
• Seasonality
• Life cycle

Question 8

What is the random (or residual) demand component?

Answer 8

It is all the causes that are not in any other category (tried, seasonality, life cycle)

Question 9

What is the trend as a demand component?

Answer 9

It is when the demand is following a trend.

Question 10

What is the seasonality in the demand component?

Answer 10

It is when demand increases and decreases regularly and predictably over a period of one year or less.

Question 11

What is the life cycle of a good or service?

Answer 11

It is the common life cycle of a company.

Question 12

Give an example of a naïve forecast.

Answer 12

Demand for April 2020 was 3000 units; therefore, the forecast for April 2021 is 3000 units.