Intro_Forecasting Methods

Question 1

In push system, customer orders are performed in anticipation of customer orders?

Answer 1

Yes

Question 2

In pull system we don’t need to plan level of inventory/capacity?

Answer 2

False. Pull system initiates with customer order and forecasting is the fist step!

Question 3

3 most important questions that forecasting answers:

Answer 3

1) AMOUNT to purchase
2) WHEN to purchase
3) WHERE customers will purchase

Question 4

Consequences of an accurate forecast

Answer 4

1) High service level (retailer’s side: less stock out)

2) Low inventory level (manufacturer’s side: make to order- instead of make to demand)