Demand Management and Order Fulfilment Flashcards Preview

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Flashcards in Demand Management and Order Fulfilment Deck (19)
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1

What are the two phases of order management

1. Concept of influencing the order. The phase where an organisation attempts to change the manner by which its customers place orders
2. Concept of order execution. The phase occurs after the organisation receives the order

2

What is Demand Management

Demand management is the focused efforts to estimate and manage customers demand, with the intention of using this information to shape operating decisions.

3

What are the 4 methods of demand planning

1. Price
2. Lead-time
3. Inventory
4. Production flexibility

4

What are the 2 types of demand

1. Independent - demand for primary item
2. Dependent - directly influenced by he demand for independent item

5

TYPES OF DEMAND: All demand is subject to certain fluctuations. What is random variation.

Random Variation can not be predicted/anticipated and usually cause to hold safety stock.

6

TYPES OF DEMAND: What are trends

Trends are the gradual increase and decrease in demand over time for an organisation

7

TYPES OF DEMAND: What Type of demand repeat during a year

Seasonal Patterns usually repeat during the year for most organisations

8

TYPES OF DEMAND: What can cause Demand Fluctuations

by normal business cycles these are usually driven by the nations economy and can be growing, stagnant or declining

9

What are some ideas to forecast correctly

- use a single set of data. clean data
- segment your product base 80/20.
- history does not always repeat itself
- CPFR: collaborative planning, forecasting and replenishment

10

What are some Quantitative Forecasting Methods

1. Naive approach: looking at previous period
2. Moving Averages: looking over multiple periods and finding average
3. Exponential Smoothing: weighted average over multiple periods.
4. Trend Projections

11

What are some Qualitative Forecasting Methods

1. Executive Decision
2. Delphi Method
3. Salesforce Estimates
4. Consumer Surveys

12

Define a Demand Planning Approach

Financial forecast, a manufacturing forecast, a marketing forecast, and a distribution forecasts dont always agree if done individually by each department. It is necessary for an organisation to arrive at a forecast internally that all functional areas agree upon and can execute. A process that can be used to arrive at this consensus forecast is called the sales and operations planning process (S&OP).

13

What is the newest Demand Planning approach

CPFR = Collaborative Planning, Forecasting, & Replenishment

14

What are the 3 levels of Distribution

0 Levels: Manufacturer to Customer
1 Level: Manufacturer to Retailer to Customer
2 Levels: Manufacturer to Wholesaler to Retailer to Customer

15

Customer Fulfilment Model: What is Integrated Fulfilment and Dedicated Fulfilment

Integrated Fulfilment: 1 distribution network to service customer and retail stores
Dedicated Fulfilment: 2 distribution network to service customer and retail stores

16

Customer Fulfilment Model: What is Direct Store Delivery

Direct Store Delivery: Factory to retail store

17

Customer Fulfilment Model: What is Store Fulfilment and Flow-through Fulfilment

Store Fulfilment: isams
Flow-through Fulfilment: from distribution centre to store for customer pickup

18

What are the 4 elements Customer Service

1. Time: Order to Cash
2. Dependability: cycle time - consistant lead times, safe delivery, correct orders
3. Communication: communication during pre-transaction, transaction, and post transaction
4. Convenience: logistic service must be flexible

19

Events that can occur with stockouts

1. Buyer waits until product is available
2. Buyer back-orders the product
3. The seller loses current revenue (lost sales)
4. Seller loses buyer and future revenue (lost customer)