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Assignment 7

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Assignment #7: Chapter 7 Questions 1. Why would demand forecasting make sense in a “make to stock” situation? It projects the standard components needed so that the product can be made after customer receiving a customer order.

2. Briefly describe the three (3) types of demand forecasting models. * Judgmental- using judgment or intuition and is preferred where there is limited or no historical data, such as with a new product introduction. * Time series- use of a model to predict future values based on previously observed values. * Cause-and-effect- assumes that one or more factors are related to demand and that the relationship between cause and effect can be used to estimate future demand.

3. Why is forecast accuracy important to logistics? If it fails to maintain an accurate forecast it can cause financially setbacks.

4. Explain the difference between order cycle and order to cash cycle. Order cycle is the management of the various activities and order to cash cycle is the length of time it takes an organization to receive payment for an order.

5. Briefly describe the four (4) components of the order cycle. * Order transmittal- time from when the customer places an order until the seller receives the order. * Order processing- time from when the seller receives an order until an appropriate location (such as a warehouse) is authorized to fill the order. * Order picking and assembly- next stage of the order management process, and it includes all activities from when an appropriate location (such as a warehouse) is authorized to fill the order until goods are loaded aboard an outbound carrier. * order delivery- time from when a transportation carrier picks up the shipment until it is received by the customer

6. Explain the differences between voice-based order picking, and pick-to-light technology.

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