Lecture 3

Question 1

What does SRM stand for?

Answer 1

Supplier Relationship Management

Question 2

What is SRM?

Answer 2

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

Question 3

What does DSS stand for?

Answer 3

Decision Support System

Question 4

What is DSS?

Answer 4

A set of related computer programs and the data required to assist with analysis and decison-making within an organization

Question 5

What does CRM stand for?

Answer 5

Customer Relationship Management

Question 6

What is CRM?

Answer 6

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

Question 7

What does ERP stand for?

Answer 7

Enterprise Resource Planning

Question 8

What is ERP?

Answer 8

A tool for managing information. Information management is the organized collection storage, and use of information for the benefit of an enterprise

Question 9

What is a forecast?

Answer 9

the estimate of the future level of some variable

Question 10

What does a forecast determine? (3)

Answer 10

• Long term capacity needs
• Yearly business plans
• Shorter-term operations and supply chain activities

Question 11

What forecast types are there? (3)

Answer 11

• Demand
• Supply
• Price

Question 12

What kind of Demand Forecasts are there? (2)

Answer 12

• Overall Market Demand
• Firm-level Demand

Question 13

What kind of Supply Forecasts are there? (3)

Answer 13

• Number of current producers & suppliers
• Projected aggregate supply levels
• Technological and political trends that might affect supply

Question 14

Name a type of Price Forecast

Answer 14

Forecast prices for key materials and services

Question 15

What are the laws of forecasting? (4)

Answer 15

1. Forecasts are almost always wrong
2. Forecasts for the near term tend to be more accurate
3. Forecasts for groups of products or services tend to be more accurate
4. Forecasts are no substitute for calculted values

Question 16

What are Qualitative forecasting techniques based on?

Answer 16

Intuition or informed opinion, used when data is scarce, not available or irrelevant

Question 17

What are Quantitative forecasting techniques based on?

Answer 17

based on historical data, goes by “what happens in the past will happen in the future”

Question 18

What are qualitative techniques? (5)

Answer 18

• 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

Question 19

Quantitative models are divided into…

Answer 19

Time series models and causal models

Question 20

What is the time series forecasting method?

Answer 20

A quantitative forecasting model that uses a time series to develop forecasts

Question 21

What are the types of time series forecasting? (4)

Answer 21

• Moving Average
• Weighted moving average
• Exponential Smoothing
• Linear Regression

Question 22

What are the demand patterns within time series forecasting? (3)

Answer 22

• 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