Chapter 12 Vocab - Supply Chain

the combined process of forecasting and managing customer demands to create a planned pattern of demand that meets the firm's operational and financial goals

a decision process in which managers predict demand patterns

a proactive approach in which managers attempt to influence the pattern of demand

a consistent horizontal stream of demands

regular tendency of demand either upward or downward in a linear or nonlinear fashion

a one-time change in demand, usually due to some external influence on demand

the correlation of current demand values with past demand values

the difference between a forecast and the actual demand

a technique that seeks inputs from people who are in close contact with customers and products

forecasting techniques that use input from high-level experienced managers

a forecasting technique that uses data and experience from similar products to forecast the demand for a new product

a forecasting technique that bases forecasts on the purchasing patterns and attitudes of current or potential customers

the actual demand minus forecasted demand value for a given time period

the measurement of how closely the forecast aligns with the observations over time

the tendency of a forecasting technique to continually overpredict or underpredict demand

average error represented as a percentage of demand

what managers use to determine to see if a forecast error is unacceptable

the ratio of a running total of forecast error to MAD that indicates when the pattern of forecast error is changing significantly

a technique that automatically adjusts forecast model parameters in accordance with changes in the tracking signal

the network of physical devices that are embedded with sensors, software, and connectivity that enable data exchange and analysis

the practice of rapidly adjusting prices to shift demand in a given period

voluminous amounts of info that are easily accesible through interconnected systems

computer mediated tech and systems that enable the generation and sharing of info, ideas, interests, and reviews

a product designed so that it can be configured to its final form quickly and inexpensively once actual customer demand is known

a method by which supply chain partners periodically share forecasts, demand plans, and resource plans to reduce uncertainty and risk in meeting customer demand