Operations Management: Forecasting and Capacity Planning
4.5 (73 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
7,013 students enrolled

Operations Management: Forecasting and Capacity Planning

Operations Management Training Program (Course 5 of 8)
4.5 (73 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
7,013 students enrolled
Created by Sorin Dumitrascu
Last updated 1/2020
English
English
Current price: $34.99 Original price: $49.99 Discount: 30% off
5 hours left at this price!
30-Day Money-Back Guarantee
This course includes
  • 1.5 hours on-demand video
  • 8 articles
  • 36 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What you'll learn
  • Match customer demand trends with the patterns that illustrate them.
  • Identify the major demand forecasting variables.
  • Recognize key concepts related to various demand forecasting models and methods.
  • Sequence the stages in the demand forecasting process.
  • Recognize the characteristics of strategies used to manage capacity.
Requirements
  • This course has no special requirements or prerequisites
Description

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:

  • about the nature of supply and demand

  • learn how to identify different demand trends based on their charts

  • be introduced to the steps in the demand forecasting process, and

  • learn about the range of capacity management strategies that are available.

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!

Who this course is for:
  • Anyone working in operations management or another functional area, who is looking to gain a working understanding of the operations functions in a service or manufacturing organization
Course content
Expand 26 lectures 01:49:11
+ Forecasting and Capacity Planning
26 lectures 01:49:11

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.

Preview 03:12

The program includes, the following topics:

1. Operations Management and the Organization

2. Product and Service Management

3. Operations and Supply Chain Management

4. Inventory Management

5. Forecasting and Capacity Planning

6. Operations Scheduling

7. Management of Quality

8. Facilities Planning and Management

Preview 06:45

You might know this. I’m adding it to any course in the introductory section. But, just in case some suggestions to improve your learning.

Preview 03:25

After completing this topic, you should be able to match customer demand trends with the patterns that illustrate them

The Characteristics of Demand
01:02

Demand is a key factor in business, but it's not always constant. Suppose you manage operations at a company that distributes sun protection products to a broad geographic area, but half of that area has a shorter season of sunny weather. Ordering a constant supply of sun protection products will result in an oversupply in the winter months.

What Demand and Supply Are
03:59

As an operations manager, it's your job to match supply with demand and fine-tune operations in order to optimize the use of resources. So it's important that you understand and forecast demand accurately. But how?

Recognizing Demand Trends
08:45

The Characteristics of Demand

The Characteristics of Demand
02:42

After completing this topic, you should be able to identify the major demand forecasting variables, recognize key concepts related to various demand forecasting models and methods and sequence the stages in the demand forecasting process.

Demand Forecasting
01:45

To be able to fine-tune your production, you need to be able to forecast demand for your products. You can't rely on pure guesswork or chance. You must have more accurate methods for forecasting future demand.

Defining Demand Forecasting
03:09

When it comes to demand forecasting, there are four major variables that need to be taken into account: demand, supply, product characteristics, and the competitive environment.

The Four Variables of Demand Forecasting
07:24

Creating a demand forecast is a six-stage process. The stages are to establish the purpose of the forecast; select the items to be forecasted; determine the time horizon of the forecast; select the forecasting model; gather the data and make the forecast; and validate the results.

Steps in the Demand Forecasting Process
08:36

Now that you've learned about the six stages of the demand forecasting process, there is one stage that requires a bit more discussion. Stage four is to select a forecasting model. But when it comes time to do that, what models are available? And how do you decide between them?

Two Types of Demand Forecasting Models
03:27

Now that you've been introduced to the basic categories of demand forecasting methods, more can be said about some specific ones. Recall that the qualitative methods are expert opinion polls, Delphi technique, and consumer surveys, and that the quantitative methods are Time Series techniques and causal models.

Qualitative and Quantitative Methods
10:11

Forecasting Demand

Forecasting Demand
05:33

Use this to review details of the six stages of the demand forecasting process.

The Stages of the Demand Forecasting Process
00:01

After completing this topic, you should be able to recognize the characteristics of strategies used to manage capacity

Capacity Management
01:30

There are limits to capacity. A machine has a maximum output per hour, a truck has a maximum load, and a hotel has a certain number of rooms and employees.

Defining Capacity
10:32

Capacity management is about matching supply and demand. There are three kinds of capacity management strategies that organizations use to manage fluctuations in demand and supply: Level strategies, Chase Demand strategies, and Demand Management strategies.

Level Capacity Management Strategy
06:10

An alternative to Level capacity management strategies is Chase Demand. Organizations that use Chase Demand strategies adjust their production to reflect fluctuations in actual demand.

Chase Demand Strategy
08:03

Use this to review the characteristics of the three substrategies of the Chase Demand capacity management strategy.

Characteristics of the Three Substrategies of Chase Demand Strategy
00:16

Instead of passively anticipating or responding to the market, an alternative is to actively try to influence demand. Demand Management strategies try to smooth out the high and low ends of the demand curve by managing customer demand.

Demand Management Strategy
04:02

Use this to compare your company's capacity management strategy with the strategies discussed in this topic.

Evaluating Capacity Management Strategies
00:13

Managing Capacity

Managing Capacity
04:45

Course Project (optional)

Course Project (optional)
00:36

This course addresses the basics of demand forecasting and capacity management

Forecasting and Capacity Planning
03:00

This course addresses the basics of demand forecasting and capacity management

Forecasting and Capacity Planning
17 questions

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Bonus Lecture
00:05