Category Archives: Forecasting

OUTSTANDING CUSTOMER SERVICE AT FEDEX STARTS WITH FORECASTING

OUTSTANDING CUSTOMER SERVICE AT FED EX STARTS WITH FORECASTING FedEx is the world’s largest express transportation company. To support its global transportation network FedEx has established 51 customer service call centers throughout the world. The 16 call centers located in the United States handle about 500,000 calls a day. The service-level goal for all of its call centers is to answer 90 percent

Components of Demand

Components of Demand In most cases, the demand for products or services can be broken down into five components: (a) average demand for the period, (b) trends, (c) seasonal influence, (d) cyclical elements, and (e) random variation. Exhibit 9.4 illustrates a plot of demand over a four-year period, showing the trend. cyclical, and seasonal components, and randomness (or error) around the smoothed demand curve. C

Types of Forecasting

Types of Forecasting Forecasting techniques can be classified into three broad categories qualitative time-series analysis and causal relationship forecasting. Qualitative techniques are subjective or judgmental in nature and are based on estimates and opinions. Such techniques are used primarily when there are no data available. Time-series analysis the main focus of this chapter is based on the idea that data

Market Segmentation

Market Segmentation A major isue in the successful implementation of yield management is the ability of the firm to segment its market. Proper segmentation will prevent all of the firm’s customers from taking advantage of price reductions when they are offered to fill available capacity. Market segmentation can be done in several ways. The first is to impose signify restriction on customers who use the lower

FORECASTING SYSTEM INCREASES SALES AND REDUCES INVENTORIES AT NABISCO

FORECASTING SYSTEM INCREASES SALES AND REDUCES INVENTORIES AT NABISCO Nabisco currently produces hundreds of different cookies crackers and other snack foods. All of these products are produced in more than 30 company owned and contract bakeries and shipped to over 100 distribution centers  throughout the United States. With its Direct Store Delivery network Nabisco then delivers these products directly t

Forecasting

Chapter Objectives • Introduce the basic concepts of forecasting and its importance within an organization. • Identify several of the more common forecasting methods and how they can improve the performance of bot manufacturing and service operations. • Provide a framework for understanding how forecasts are developed. • Demonstrate that errors exist in all forecasts and show how to measure and assess