SCM 186 Exam 2 With Complete Solutions 100% Verified
Process of predicting a future event. It is the underlying basis of all business decisions.
What is forecasting?
Design new production process, add long lead time equipment, acquire or sell facilities
Long Range Planning
Subcontract, add or sell equipment, add or reduce shifts, build or use inventory,
training.
Intermediate Range Planning
Schedule jobs, schedule personnel, allocate machinery
Short Range Planning
Up to 1 year, generally less than 3 months
Short Range Time Horizon
3 Months to 3 years
Medium Range Time Horizon
3+ years
Long range Time Horizon
True
Medium / Long range deal with more comprehensive issues
, This is true
Short terms range usually employs different methedologies than long term forecasting
Technological forecasts, economic forecasts, and demand forecasts
What are the three types of business forecasts
Predict rate of technological process. Impacts development of new products
Technological forecasts
Address business cycle - inflation rate, money supply, housing stats, etc
Economic Forecasts
Predict sales of existing products and services
Demand Forecasts
Supply chain management; Good supplier relations
What are the strategic performance of Technological Forecasts?
Human resources; Hiring, training, and laying off workers
What is the strategic importance of economic forecasts?
Capacity; such as capacity shortages or capacity surpluses
What is the strategic importance of demand forecasts?
Process of predicting a future event. It is the underlying basis of all business decisions.
What is forecasting?
Design new production process, add long lead time equipment, acquire or sell facilities
Long Range Planning
Subcontract, add or sell equipment, add or reduce shifts, build or use inventory,
training.
Intermediate Range Planning
Schedule jobs, schedule personnel, allocate machinery
Short Range Planning
Up to 1 year, generally less than 3 months
Short Range Time Horizon
3 Months to 3 years
Medium Range Time Horizon
3+ years
Long range Time Horizon
True
Medium / Long range deal with more comprehensive issues
, This is true
Short terms range usually employs different methedologies than long term forecasting
Technological forecasts, economic forecasts, and demand forecasts
What are the three types of business forecasts
Predict rate of technological process. Impacts development of new products
Technological forecasts
Address business cycle - inflation rate, money supply, housing stats, etc
Economic Forecasts
Predict sales of existing products and services
Demand Forecasts
Supply chain management; Good supplier relations
What are the strategic performance of Technological Forecasts?
Human resources; Hiring, training, and laying off workers
What is the strategic importance of economic forecasts?
Capacity; such as capacity shortages or capacity surpluses
What is the strategic importance of demand forecasts?
