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Anne Janssens 0845954
Minor logistics: Operations
Mrs. Osentoski-Monsma
Week 1 – Homework – Discussion questions Chapter 11
Question 1:
Yes, there is a difference. Demand and sales are not always the same thing. Whenever the
demand is not constrained by capacity or other management policies, the forecasting of
demand will be the same as the forecasting of sales. Otherwise, sales may be somewhat
below real customer demand.
Yes, demand can be forecast from historical data. For example, time-series methods are
used to make detailed analyses of past demand patterns over time and use those patterns to
predict demand in the future.
Question 5:
The use of qualitative forecasts:
- When past data are not reliable indicators of future conditions.
- For new-product and new-service introductions for which historical data are not
available.
The use of time-series:
- Used to make detailed analyses of past demand patterns over time and use those
patterns to predict demand in the future.
The use of causal forecasts:
- To develop a cause-and-effect model between demand and other variables.
- Used to predict turning points in the demand function.
- Useful for facility and process planning in operations.
Question 11:
This method requires the assumption that demand is known with certainty. This can be a
weakness. The system is not able to respond to sudden changes in demand as a result of
capacity restrictions. Another problem is the costs that result from changing production and
workforce levels from one period to the next (smoothing).
Question 12:
This decision relies on the stability of demand. If demand is stable, management should tent
- A long-term collaborative relationship that is mutually beneficial is needed.
- Sufficient time and resources must be provided.
