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Tutorial 7 Demand Management.: ST ST

Demand management can help align channel members, satisfy customers, and solve problems. When supply and demand are not aligned, logistical problems like excess inventory or stockouts can occur. Forecasting methods like moving averages and exponential smoothing can help predict demand and soften imbalances. Collaborative planning across functions like marketing, logistics, finance, and manufacturing is important for the Sales and Operations Planning (S&OP) process. Elements include demand planning, supply planning, inventory management, and production planning. Collaborative planning provides benefits like improved demand forecasting and supply chain coordination.

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WEI JIE TEE
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68 views

Tutorial 7 Demand Management.: ST ST

Demand management can help align channel members, satisfy customers, and solve problems. When supply and demand are not aligned, logistical problems like excess inventory or stockouts can occur. Forecasting methods like moving averages and exponential smoothing can help predict demand and soften imbalances. Collaborative planning across functions like marketing, logistics, finance, and manufacturing is important for the Sales and Operations Planning (S&OP) process. Elements include demand planning, supply planning, inventory management, and production planning. Collaborative planning provides benefits like improved demand forecasting and supply chain coordination.

Uploaded by

WEI JIE TEE
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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TUTORIAL 7

DEMAND MANAGEMENT.

1.How can demand management help to unify channel members, satisfy customers, and solve
customer problems?

2. What are some of the logistical problems that may arise when supply and demand for a
product are not aligned properly? What are some of the methods used to soften the effects of
this imbalance?

3. Leaffe Chocolate Manufacturer has had the following pattern of its sales over the past 7
months:

Month Sales (box)


Jan 873
Feb 904
March 911
April 887
May 899
June 912
July 859

(a) Based on the data above, work out the forecast for August sales if the company
applies the following approaches:
(i) Four-month moving average.

(ii) Weighted moving average with weights of .2, .3, and .5.

(iii) Assume the forecast for June sales is 850 boxes. Compute the forecast based on
exponential smoothing approach with alpha value 0.2.

(b) Based on the data above, forecast the sales of April using exponential smoothing with
alpha value 0.2.

As the question doesn’t make any assumption, thus, assume the sales forecast of the 1 st period
(Jan) = actual sales of 1st period (Jan).
3. Government agency have received the renewal applications for foreign workers from employers
in recent months as below:

Month Week Applications


Jan 1 258
2 200
3 215
4 212
Feb 1 207
2 211
3 196
4 206

Based on the data above, assist the agency to work out following computation for manpower
allocation and counter arrangement:

(a) Forecast the applications for the 1st week of Mar based on moving average with weights of .4,
.3, .2, and .1

(b) Compute Mean Absolute Deviation (MAD) for the period of 1 st week of Feb through 4th week
of Feb based on exponential smoothing with alpha value = 0.4, weighted moving average
with weights in part (a), and 3-weeks moving average. Assume the forecast for 4 th week of
Jan is 300 applications. Which forecasting method is better off? Justify.
(Round your workings in one decimal place)

4. What are the basic elements of the S&OP process? How do marketing, logistics, finance,
and manufacturing contribute to each element?

5. What are the critical elements of collaborative planning? What benefits do they provide for
the supply chain?

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