Operations Management: Forecasting and Capacity Planning

Overview/Description
Customer demand for products and services changes constantly. Forecasting and capacity planning ensure that resource are managed so that customer demand is met in the right amount, at the right time, with the right quality. Demand forecasting helps companies determine the supply of products and services needed to meet customer demand. When the supply requirements are known, an organization can focus on ensuring the availability of appropriate levels of material, workforce, facilities, and financial resources to produce the desired products and services. Any adjustments to the overall capacity of operations are made based on long-range customer demand forecasts and the organization's current capacity to meet them. This course explores the basic concepts related to demand forecasting and capacity planning. It discusses the key characteristics of various demand patterns and the four major demand forecasting variables. It walks you through the typical demand forecasting process applied in manufacturing and service organizations. Finally, the course recognizes the advantages of effective capacity management and explains some basic strategies to manage an organization's capacity.

Target Audience
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

Expected Duration (hours)
1.0

Lesson Objectives

Operations Management: Forecasting and Capacity Planning

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