Term
| CPFR (Collaborative Planning, Forecasting, and Replenishment) |
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Definition
| sharing info with a selling company ex, Colgate does a promotion and tells Walmart so they know to order more products earlier |
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Term
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Definition
| length of time where a forecast is based, short range are more accurate than long range because there are less variables |
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Term
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Definition
| 1) Trend, 2) Seasonal patterns, 3) Cyclical patterns, 4)/5) Random variation or noise and one time variation or error |
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Term
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Definition
| aka Noise, unexplained deviation of a time series or trend because forecasts are never accurate |
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Term
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Definition
| one time variation that is explainable, ex hurricane causes increase in demand for food and water |
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Term
| Judgemental forecasting (Qualitative) |
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Definition
| relies on opinions and expertise of forecasts when no historical data is available |
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Term
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Definition
| forecasting through expert opinion by getting a bunch of experts to talk about ideas individually |
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Term
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Definition
| sample size is larger than delphi method but is costly |
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Term
| Statistical forecasting (Quantitative) |
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Definition
| using numbers to assume that the future is correlated to the past |
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Term
| MAPE (Mean Absolute Percentage Error) |
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Definition
| dividing absolute error by time series data to make it easier to interpret (a percentage of error) |
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Term
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Definition
| method to quantiy bias by getting the average absolute deviation (MAD) |
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