Term
| Causal Relationship Forecasting |
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Definition
| Forecasting using independent variables other than time to predict future demand. |
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Term
| Collaborative Planning, Forecasting, and Replenishment (CPFR) |
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Definition
| An Internet tool to coordinate forecasting, production, and purchasing in a firm's supply chain. |
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Definition
| The process of identifying and separating time series data into fundamental components such as trend and seasonality. |
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Definition
| A time series forecasting technique using weights that decrease exponentially (1-alpha) for each past period. |
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Term
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Definition
| The difference between actual demand and what was forecast. |
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Term
| Linear Regression Forecasting |
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Definition
| A forecasting technique that fits a straight line to past demand data. |
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Term
| Mean Absolute Deviation (MAD) |
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Definition
| The average of the absolute value of the actual forecast error. |
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Term
| Mean Absolute Percent Error (MAPE) |
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Definition
MAD/Average Demand.
THe average error measured as a percentage of average demand. |
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Term
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Definition
Forecast is the average of a fixed number of past periods.
Removes some of the random fluctuation from the data. |
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Definition
| alpha depends upon how much random variation is present. |
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Term
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Definition
| delta depends upon how steady the trend is. |
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Term
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Definition
| Medium and long-term forecasts that are used to make decisions related to design and plans for meeting demand. |
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Term
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Definition
| Short-term forecasts used as input for making day-to-day decisions related to meeting demand. |
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Definition
Using the past to predict the future
(-3,3-24,24+) |
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Term
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Definition
| A measure of whether the forecast is keeping pace with any genuine upward or downward changes in demand. This is used to detect forecast bias. |
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Definition
| A forecast made with past data where more recent data are given more significance than older data. |
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Definition
| The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized. |
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Term
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Definition
| Capacity in excess of expected demand. |
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Term
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Definition
| The amount of output that a system is capable of achieving over a specific period of time. |
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Term
| Capacity Utilization Rate |
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Definition
| Measures how close a firm's current output is to its best operating level. |
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Term
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Definition
| The notion that as a plant gets larger and volume increases, the average cost per unit drops. At some point, the plant gets too large and costs per unit begin to increase. |
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Term
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Definition
| This is when multiple products can be produced at a lower cost in combination than they can be separately. |
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Term
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Definition
| A facility with a fairly limited set of production objectives. Typically the focus would relate to a specific product or product group. |
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Term
| Plant within a Plant (PWP) |
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Definition
| A concept that can be used to operationalize a focused factory by designating a specific area in a larger plant. |
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Term
| Strategic Capacity Planning |
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Definition
| Determining the overall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy. |
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