Lecture 3 Flashcards
What does SRM stand for?
Supplier Relationship Management
What is SRM?
the systematic approach to evaluating vendors that supply goods, materials, and, services to an organization, determining each supplier’s contribution to succes and developing strategies to improve their performance
What does DSS stand for?
Decision Support System
What is DSS?
A set of related computer programs and the data required to assist with analysis and decison-making within an organization
What does CRM stand for?
Customer Relationship Management
What is CRM?
The combination of practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. The goals is to improve customer service relationships and assist in customer retention and drive sales growth
What does ERP stand for?
Enterprise Resource Planning
What is ERP?
A tool for managing information. Information management is the organized collection storage, and use of information for the benefit of an enterprise
What is a forecast?
the estimate of the future level of some variable
What does a forecast determine? (3)
- Long term capacity needs
- Yearly business plans
- Shorter-term operations and supply chain activities
What forecast types are there? (3)
- Demand
- Supply
- Price
What kind of Demand Forecasts are there? (2)
- Overall Market Demand
- Firm-level Demand
What kind of Supply Forecasts are there? (3)
- Number of current producers & suppliers
- Projected aggregate supply levels
- Technological and political trends that might affect supply
Name a type of Price Forecast
Forecast prices for key materials and services
What are the laws of forecasting? (4)
- Forecasts are almost always wrong
- Forecasts for the near term tend to be more accurate
- Forecasts for groups of products or services tend to be more accurate
- Forecasts are no substitute for calculted values
What are Qualitative forecasting techniques based on?
Intuition or informed opinion, used when data is scarce, not available or irrelevant
What are Quantitative forecasting techniques based on?
based on historical data, goes by “what happens in the past will happen in the future”
What are qualitative techniques? (5)
- Market Surveys: structured questionnaires submitted to potential customers
- Build-up forecasts: experts familiar with specific market segments estimate the demand within these segments
- Life cycle analogy method: Identify the time frames and demand levels of different stages of new product or service
- Panel Consensus Forecasting: Experts come together to develop forecasts
- Delphi method: experts work individually to develop forecasts
Quantitative models are divided into…
Time series models and causal models
What is the time series forecasting method?
A quantitative forecasting model that uses a time series to develop forecasts
What are the types of time series forecasting? (4)
- Moving Average
- Weighted moving average
- Exponential Smoothing
- Linear Regression
What are the demand patterns within time series forecasting? (3)
- Randomness: unpredictable movement from one period to the next
- Trend: long-term movement up or down in a time series
- Seasionality: a repeated pattern of spikes or drop in a time series associated with certain times of the year
