BUAD 332 EXAM 1 QUESTIONS AND ANSWERS SET
A+
✔✔forecast are - ✔✔best guesses about what we think will happen
✔✔plans are - ✔✔decisions we make about what we will actually do
✔✔forecasting level - ✔✔at what level of granularity is your forecast expressed?
✔✔product forecast example - ✔✔how much beer will be demanded?
✔✔brand forecast example - ✔✔how much bud lite will be demanded?
✔✔SKU forecast example (most unpredictable) - ✔✔how much bud lite in 6-pack long
neck bottles will be demanded?
✔✔forecasting time horizon - ✔✔how far out into the future are you forecasting
demand?
✔✔forecasting time interval - ✔✔how frequently do you update your forecast?
✔✔nature of customer base - ✔✔- narrow?
- broad?
- regional differences?
✔✔nature of the products - ✔✔- new products?
- seasonal demand?
- shelf life?
- project-based business?
✔✔nature of the data - ✔✔- age?
- detail?
- quality?
, ✔✔nature of the people - ✔✔- resources?
- education/training?
✔✔demand forecasting systems - ✔✔statistical engine and communication
✔✔statistical engine - ✔✔software that does the statistics
✔✔communication - ✔✔- integration with other corporate systems
- ability to share information with upstream and downstream users
✔✔two categories of forecasting techniques - ✔✔quantitative (statistical) and qualitative
✔✔trend - ✔✔- continuing pattern of demand increase/decrease
- pattern can be a straight line or a curve
✔✔seasonality - ✔✔- repeating pattern of demand increases/decreases
- seasonality occurs within a year, cycles occur over longer than one year
✔✔noise - ✔✔- random fluctuation
- part of demand history which other time series components cannot explain
✔✔demand is always the ___________ variable - ✔✔dependent
✔✔qualitative forecasting - ✔✔process of turning experience, judgments, and intuition
of experienced people into formal forecasts
✔✔when should sales people forecast? - ✔✔- when they have insights into changing
demand patterns at their large customers
- when they have insights into probabilities of securing large orders
✔✔how to measure forecasting performance - ✔✔bias and accuracy
✔✔result of forecasting excellence - ✔✔cost reduction and customer satisfaction
✔✔keys to effective forecasting management - ✔✔- forecasting is not planning
- forecast demand, plan supply
- communicate, coordinate, collaborate
- use tools wisely
- make it important
- measure, measure, measure
✔✔S&OP (sales and operations planning) - ✔✔process by which company matches its
demand in the marketplace with its supply capabilities
A+
✔✔forecast are - ✔✔best guesses about what we think will happen
✔✔plans are - ✔✔decisions we make about what we will actually do
✔✔forecasting level - ✔✔at what level of granularity is your forecast expressed?
✔✔product forecast example - ✔✔how much beer will be demanded?
✔✔brand forecast example - ✔✔how much bud lite will be demanded?
✔✔SKU forecast example (most unpredictable) - ✔✔how much bud lite in 6-pack long
neck bottles will be demanded?
✔✔forecasting time horizon - ✔✔how far out into the future are you forecasting
demand?
✔✔forecasting time interval - ✔✔how frequently do you update your forecast?
✔✔nature of customer base - ✔✔- narrow?
- broad?
- regional differences?
✔✔nature of the products - ✔✔- new products?
- seasonal demand?
- shelf life?
- project-based business?
✔✔nature of the data - ✔✔- age?
- detail?
- quality?
, ✔✔nature of the people - ✔✔- resources?
- education/training?
✔✔demand forecasting systems - ✔✔statistical engine and communication
✔✔statistical engine - ✔✔software that does the statistics
✔✔communication - ✔✔- integration with other corporate systems
- ability to share information with upstream and downstream users
✔✔two categories of forecasting techniques - ✔✔quantitative (statistical) and qualitative
✔✔trend - ✔✔- continuing pattern of demand increase/decrease
- pattern can be a straight line or a curve
✔✔seasonality - ✔✔- repeating pattern of demand increases/decreases
- seasonality occurs within a year, cycles occur over longer than one year
✔✔noise - ✔✔- random fluctuation
- part of demand history which other time series components cannot explain
✔✔demand is always the ___________ variable - ✔✔dependent
✔✔qualitative forecasting - ✔✔process of turning experience, judgments, and intuition
of experienced people into formal forecasts
✔✔when should sales people forecast? - ✔✔- when they have insights into changing
demand patterns at their large customers
- when they have insights into probabilities of securing large orders
✔✔how to measure forecasting performance - ✔✔bias and accuracy
✔✔result of forecasting excellence - ✔✔cost reduction and customer satisfaction
✔✔keys to effective forecasting management - ✔✔- forecasting is not planning
- forecast demand, plan supply
- communicate, coordinate, collaborate
- use tools wisely
- make it important
- measure, measure, measure
✔✔S&OP (sales and operations planning) - ✔✔process by which company matches its
demand in the marketplace with its supply capabilities
