Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Managers are finding it more difficult to predict demand and plan production and orders in the face of an unprecedented amount and variety of products
Managers are finding it more difficult to predict demand and plan production and orders in the face of an unprecedented amount and variety of products on the market. As a result, inaccurate forecasts are increasing, as are the costs associated with those errors. Accurate response, a novel approach to the entire forecasting, planning, and manufacturing process, requires first determining what forecasters can and cannot predict well. Then, supply chains must be made quick and flexible so that managers can postpone decisions on their highly unpredictable products until they have some market signals, such as early-season sales figures, to help accurately match supply with demand. Accurate responses allow firms to leverage the benefits of flexible production and lower cycle times considerably more effectively DQ 1: After reading the article, what did you learn from it? (e.g., 1) what are some of the factors that are making forecasting more difficult? 2) What do reactive capacity and non-reactive capacity mean? 3) How does knowing the type of demand affect the design of your supply chain? etc.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started