Demand Management and Order Fulfilment Flashcards
What are the two phases of order management
- Concept of influencing the order. The phase where an organisation attempts to change the manner by which its customers place orders
- Concept of order execution. The phase occurs after the organisation receives the order
What is Demand Management
Demand management is the focused efforts to estimate and manage customers demand, with the intention of using this information to shape operating decisions.
What are the 4 methods of demand planning
- Price
- Lead-time
- Inventory
- Production flexibility
What are the 2 types of demand
- Independent - demand for primary item
2. Dependent - directly influenced by he demand for independent item
TYPES OF DEMAND: All demand is subject to certain fluctuations. What is random variation.
Random Variation can not be predicted/anticipated and usually cause to hold safety stock.
TYPES OF DEMAND: What are trends
Trends are the gradual increase and decrease in demand over time for an organisation
TYPES OF DEMAND: What Type of demand repeat during a year
Seasonal Patterns usually repeat during the year for most organisations
TYPES OF DEMAND: What can cause Demand Fluctuations
by normal business cycles these are usually driven by the nations economy and can be growing, stagnant or declining
What are some ideas to forecast correctly
- use a single set of data. clean data
- segment your product base 80/20.
- history does not always repeat itself
- CPFR: collaborative planning, forecasting and replenishment
What are some Quantitative Forecasting Methods
- Naive approach: looking at previous period
- Moving Averages: looking over multiple periods and finding average
- Exponential Smoothing: weighted average over multiple periods.
- Trend Projections
What are some Qualitative Forecasting Methods
- Executive Decision
- Delphi Method
- Salesforce Estimates
- Consumer Surveys
Define a Demand Planning Approach
Financial forecast, a manufacturing forecast, a marketing forecast, and a distribution forecasts dont always agree if done individually by each department. It is necessary for an organisation to arrive at a forecast internally that all functional areas agree upon and can execute. A process that can be used to arrive at this consensus forecast is called the sales and operations planning process (S&OP).
What is the newest Demand Planning approach
CPFR = Collaborative Planning, Forecasting, & Replenishment
What are the 3 levels of Distribution
0 Levels: Manufacturer to Customer
1 Level: Manufacturer to Retailer to Customer
2 Levels: Manufacturer to Wholesaler to Retailer to Customer
Customer Fulfilment Model: What is Integrated Fulfilment and Dedicated Fulfilment
Integrated Fulfilment: 1 distribution network to service customer and retail stores
Dedicated Fulfilment: 2 distribution network to service customer and retail stores
