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Forecasting and Demand Presentation
Forecasting is essentially a reactive approach that considers fluctuations in demand to be mostly outside the firm’s control.
Rather than simply forecasting and reacting to changes in demand, however, business executives would prefer to influence the
timing, pattern, and certainty of demand to whatever extent they can. They do this through demand management activities that
adjust product characteristics including price, promotion, and availability. The purpose is to influence product demand to achieve
sales objectives and to accommodate the supply chain resources and capacities that a firm has in place.
1. How would you require extra resources to expand and contract capacity to meet varying demand for your current
organization?
2. How does backlogging smooth out certain orders to demand fluctuations?
3. When does customer dissatisfaction create an inability to meet all demands?
4. How would you buffer a system through the use of safety stocks (excess inventories), safety lead time (lead times with
a cushion) or safety capacity (excess resources) at work?
5. 10 – 12 slides excluding cover and reference page
6. Three outside sources
EXAMPLE TO USE: Beats Earbuds: use Beats earbuds as an example in your discussion.
Due: November 1
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