- Demand forecasting
- acting on a forecast
- information sharing in a supply chain
- the role of distribution channels and intermediaries
- mass customization
Bad forecasting demand
may result company doing discounts or unable to sell its products at all
Variability and Uncertainty
Prediction = Forecast
What do you want from a forecast?
A: What are the outcomes? and What are the likelihood for them?
How to calculate demand forecast?
Village idiot’s solution (assuming you see real demand) = ex you look at the sales number from 12 weeks, you simply find the likelihood of the sales number will repeat again.
Out of probably of a forecast, you can not simply take a guess or take the average because you never know whether making a profit/ loss will be greater.
The role of distribution channels and intermediaries
Operation departments – try to maximize efficiency
Marketing departments – try to maximize profit
Thus, both departments should compromise and think “What’s the big picture?”. Tries to achieve the firm’s overall