LECTURE 3 - part 1 Flashcards
Enterprise Resource Planning (ERP) (definition)
A process used by companies to manage and integrate the important part of their business. ERP software can integrate all of the processes needed to run a company and allows different departments to communicate and share information more easily
Development ERP (begin to end) (4)
- Material Requirement Planning (MRP)
- Manufacturing resource planning (MRPII)
- Enterprise Resource planning (ERP)
- Web-integrated enterprise resource planning
Forecast (definition)
an estimate of the future level of some variable
Forecasting is used to deterime: (3)
- Long-term capacity needs
- Yearly business plans
- Shorter-term operations and supply chain activities
Forecast types (3)
- demand
- supply
- price
Demand forecast (2)
- Overall market demand
- Firm-level demand
Supply forecast (3)
- Number of current producers and suppliers
- Projected aggregate supply levels
- Technological and political trends that might affect supply
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 calculated values
Qualitative forecasting (definition)
Forecasting techniques based on intuition or informed opinion
Quantitative forecasting (definition)
Forecasting models that use measurable or historical data to generate forecasts
Qualitative forecast methods (5)
- Market surveys
- Panel consensus forecasting
- Delphi method
- Life-cycle analogy method
- Build-up forecast
Panel consensus forecasting
experts come together to develop forecasts
Delphi method
experts work individually to develop forecasts
Life-cycle analogy method
identify the time frames and demand levels of different stages of new product or service
Build-up forecasts
experts familiar with specific market segments estimate the demand within these segments
