BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the process of selecting an item Parts Numbers (SKU) to be used as stock items or eligible to be used as stock to support needs
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scheduling of ordering spare parts to distributors or suppliers to fill in used stock
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activities carried out to ensure that what has been planned goes according to the actual conditions in the field
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the process of forecasting the need for a spare part in the future by using supporting data
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Detailed explanation-1: -Demand forecasting is the process of using predictive analysis of historical data to estimate and predict customers’ future demand for a product or service. Demand forecasting helps the business make better-informed supply decisions that estimate the total sales and revenue for a future period of time.
Detailed explanation-2: -Spare parts exhibit erratic, lumpy, or intermittent demand patterns involving long series of zero-demand periods. Traditional time-series methods, such as exponential smoothing or moving averages, often fail to provide accurate estimates for such demand patterns because they place weight on the most recent data points.
Detailed explanation-3: -Forecasting is the process of making predictions based on past and present data. Later these can be compared (resolved) against what happens. For example, a company might estimate their revenue in the next year, then compare it against the actual results. Prediction is a similar but more general term.
Detailed explanation-4: -Demand forecasting is the process of understanding and estimating future customer demand over a specific period. Generally, it will involve historical sales data with seasonal variances and other information to provide the most accurate predictions.