Operations Management Training Program (Course 8 of 8)
The course on Supply Forecasting and Capacity Planning is part of the Operations Management Training Program which includes a number of eight sections also presented as individual courses for your convenience.
How can a business cope with changes in demand for its goods or services? If demand falls below supply, the storage of unsold products will cost money, or staff and equipment will be idle.
But if demand exceeds supply, customers will be frustrated by unavailable products or long lines for service, and they may take their business to a competitor. Whether the business is manufacturing or service based, dealing with fluctuations in demand is a challenge for operations managers.
An operations manager’s objective is to fine-tune the production process so that the organization’s output matches to constantly changing consumer demand. To accomplish this task, the manager needs a knowledge of demand forecasting and of strategies for managing capacity to meet ever-changing demand.
Demand forecasting often uses information about past demand to identify patterns that can help predict future demand. It reduces risk and uncertainty in planning operations. The aim of capacity management is to make decisions that optimize productivity in light of actual or anticipated demand.
This course addresses the basics of demand forecasting and capacity management, you’ll learn:
In order, the six steps in the demand forecasting process are: establish purpose, select items, determine time horizons, select model, gather data and make forecast, and validate results. Three strategies are Level strategy, Chase Demand strategy, and Demand Management strategy
This course will give you important foundational knowledge of the techniques of demand forecasting and capacity management. You’ll become better equipped to implement them in your organization to align production schedules or service capacity to changing customer demands.
That’s it! Now go ahead and push that “Take this course” button, and see you on the inside!