Page 99 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes Demand Forecasting: Demand forecasting is a method of projecting the demand for goods and
services over a specific period of time.
Forecast: A forecast is an estimate of a future event achieved by systematically combining and
casting forward in a predetermined way data about the past.
Replenishment: Replenishment is the movement of inventory from upstream – or reserve –
product storage locations to downstream – or primary – storage, picking and shipment locations.

Simulation: This method is highly sophisticated and is mainly used where the organization
needs to generate multiple ‘what-if’ scenarios.
Supply Chain Forecasting: It concerns the spatial as well as variation of demand with time, the
extent of its variability, and its degree of randomness.
Time Series: Time series forecasts rely on historical demand in order to predict the future demand.
Validation Assessments: Assessment validation refers to a process where assessors compare and
evaluate against the relevant competency standard/s to ensure, validity, reliability, fairness,
flexibility and effectiveness.

4.7 Review Questions

1. Define Demand Forecasting.

2. Highlight different forecasting methods.
3. Discuss Accuracy and Validation Assessments.
4. Discuss Collaborative Planning Forecasting and Replenishment (CPFR).
5. Do you agree with the statement that CPFR is forecasting based on the concept of supply
chain management? If yes, give reasons.
6. “Collaborative forecasting overcomes some of the inherent problems with traditional
forecasting.” Explain.
7. Write brief note on CPFR Model.

8. What are the activities in the CPRF Process?
9. Define collaborative approach.
10. “Supply and demand reflects the time dimension.” Discuss.

Answers: Self Assessment

1. Forecasting 2. Medium-term
3. Time 4. Independent
5. Spatial 6. False
7. True 8. False

9. True 10. True
11. Forecasting Champion 12. Cross-functional
13. Functional 14. Two
15. Supply Chain 16. True

17. True

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