Forecasting and Demand Planning

3. Based on the description in the text and the evidence in the Exhibits 6 and 9, what went wrong with the SF-6000 forecast?

Select an existing production organization. Analyze the organization’s current vision, mission, business strategy, operation strategy, supply chain, total quality management, just-in-time philosophy, forecasting method, statistical technique, facility location, work design, project life cycle, and project management. Note: You will need this information in order to complete this and subsequent assignments.

2. On the course website is an Excel file that contains demand and forecast data for a

Understanding key business processes, risk management process, costing, budgetary controls, variance analysis and internal control systems.

External planning factors must be frequently revised so a business can abide by new laws or economic change so it can remain efficient and profitable. It could be demand for a product/service, government policies, change in nature of work, workforce skills, labour market competition and impact of automation. These are out of a business’s direct control so human resources must be able to adjust.

* Forecasting is an impartial strategic ingredient that will ensure apt base for reputable planning. Our forecast is always the first step in developing plans in running the business along with our future plans of growth strategies. With this tool, we are able to anticipate our sales within reason that then can allow for us to control our costs in conjunction with inventory which will then help us to enhance our customer service. Sales forecasting is a vital strategic tactic in our company’s methodology.

We first predict the annual demand for the year 1972 based on trend for 4 months of 1972 based on corresponding months of 1971.

  Instructor Explanation: Understand the scope of workOverall cost or financial proposalTechnical capabilityManagement approachReputationProduction capacityBusiness size and typeFlexibilityExperienceValue-added servicesReferencesTimeframeIndustry developments and benchmarksHuman resources

Apple Inc. is one of the largest technology companies in the world. The company develops consumer electronic gadgets such as smartphones, computers, desktops, laptops, iPods and tablets. The company was formed in 1976 by Steve Jobs with an intention of making computers but later it changed its focus to include the manufacturing of consumer electronics. However, the company was dealt a big blow when its chief executive officer and founder Steve Jobs died. The company will therefore have to search for ways in which it will maintain its market dominance as well as capture new and emerging markets. This research therefore seeks to establish how Apple forecasts demand and manages its inventory (Apple Computer Inc., 2006).

Organizations large or small all strive to be successful through fostering a culture of great people, great processes, great products, and great results. Typically, three main functions play into an organization, marketing, operations, and financial accountability. Marketing generates the demand through the promotion of goods and services. Operations creates the goods, handles the movement of the goods, and ensures successful final delivery of the goods or service. The financial accountability is how the organization is doing financially concerning accounts receivable and accounts payable. Of the three, operations is arguably the most important to the success of an organization and has many key components that play into this success including operations strategies, supply chain, inventory control, and cost leadership to name a few.

Forecasting is the methodology utilized in the translation of past experiences in an estimation of the future. The German market presents challenges for forecasting techniques especially for its retail segment. Commercially oriented organizations are used to help during forecasting as general works done by academic scientists are not easy to come across (Bonner, 2009).

We first predict the annual demand for the year 1972 based on trend for 4 months of 1972 based on corresponding months of 1971.

regulation, cost and availability of raw materials, and cost of labor. A business may have the best idea for

This could be company strengths, current market penistrationpenetration, supplier agreements and simply all of the business and/or customer loyalties that they have had. Also in today’s market the consumers are looking for the “next new thing”. They no longer want an extension of what they already have. The consumers are loyal to a company, but can quickly change focus if a company fails to continue to change to meet their needs and/or demands for change.

Competition: As time goes on firms drop out until no one is producing the product.