Intuition Buildin and Motvation for Demand Forecasting
- What is Forecasting?
- The act of predicint future events
- "All supply chain decisions made before demand has materialized are made to a forecast"
- How does it apply to Disneyland?
- serves as analytical foundation for ops planning at Resort
- used by labor mgmt, maintenance, ops, finance and park scheduling
- used to adjust opening times, rides, shows, staffing levels, and guests admitted
Quantitative Approaches to Demand Forecasting
- What is a Sales/Demand Forecast?
- estimate of the level of sales you expect to achieve as a function of time
- serves as basis for supply chain decisions
- What are the characteristics of Forecasts?
- Forecasts are always wrong/ inaccurate and should thus include both the expected value