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The capacity planning is a critical function in Supply chain planning.

A capacity is a work load that can be performed in a work center for a given period. We usually express the capacity in machines hours, labor hours or in throughput rate.

Friday, 20 November 2009 17:56
Published in Planning & Scheduling
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A  Forecast is by nature uncertain, so it is required to compare it to the actual sales in order to estimate its error or its forecasting performance.

There are 4 main indicators to assess the forecast accuracy:

Thursday, 05 November 2009 14:58
Published in Forecasting Management
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The simple exponential forecasting methods like the weighting moving average methods smoothes out data and there is a lag in the forecast relative to the actual data.
If there is a trend in the data, the forecast will be additionally inexact, that’s why the linear trend needs to be integrated in the exponential smoothing model.

Wednesday, 04 November 2009 18:57
Published in Forecasting Management
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Although this model looks slightly complicated, it can be easily modeled into Excel so you’ll find spreadsheets all ready for your own use in the template area.
The time series model relies on historical data and its principle is to plot the demand data on a graph over time that why it is called time series.

Monday, 02 November 2009 15:12
Published in Forecasting Management
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The averaging models for a time series assume with some exceptions that there is no seasonal or trend effects.
These models only focus on the random variations, where models smoothed past data to predict the next period, and not more.

Monday, 02 November 2009 21:51
Published in Forecasting Management
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The lean manufacturing is a way for companies to be more competitive in a global market environment and in a customer-centred supply chain organisation.

Monday, 23 January 2012 08:53
Published in Operations Management
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The main goal of demand planning is to answer the following question:

"What the customer is expected to buy?"

It is critical to establish in the S&OP (Sales & Operations Planning) horizon - 18 months - what would be the company income in Unit and in Value ($) in order to plan accordingly the Supply plan.

Sunday, 27 November 2011 15:52
Published in Forecasting Management
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