What are strategic forecasts?
Decisions about overall directions
What are tactical forecasts?
Used for day-to-day decisions
What is the decoupling point?
The point at which inventory is stored allowing the supply chain to operate independently
~~ forecasting helps determine level of inventory needed at decoupling points
What are the four types for forecasting?
- Qualitative
- Time series analysis
- Causal relationships
- Simulation
What is autocorrelation?
The persistence of occurrence, value expected is highly correlated with its own past values
What are the different types of time series analysis?
~ short term: forecasting <3mo
~ medium term: 3mo-2yr
~ long term: >2yr
What are the factors that go into model selection?
- Time horizon to be forecast
- Data availability
- Accuracy required
- Budget
- Availability of qualified personnel
What are the two types of forecasting errors?
~ bias
~ random
What is collaborative planning, forecasting, and replenishment (CPFR)?
~ a web-based process used to coordinate supply chain
