Standardization strategies help to manage demand variability and making accurate forecasts

Manage Learn to apply best practices and optimize your operations. What are the best strategies for managing demand variability? One of the main challenges for manufacturers, supply chain managers and materials planners is demand variability. Here are 10 strategies for gaining control.

Standardization strategies help to manage demand variability and making accurate forecasts

Answer these questions about the case at the beginning of this chapter: Other than a need to expand, what other reasons would Wal-Mart have for opening stores globally? Why would it be beneficial for Wal-Mart to have suppliers in different countries?

Why would Wal-Mart want strong centralized control of its stores?

Standardization strategies help to manage demand variability and making accurate forecasts

Why would Wal-Mart want strong local control of stores? What pitfalls and opportunities, other than those mentioned in this case, will Wal-Mart face over the next few years? List two low clock speed products, two medium clock speed products, and two fast clock speed products.

How does a low clock speed impact the product design strategy? How about a fast clock speed? Give an example of a product appropriate for each of the boxes in Figure Discuss some examples of products that are designed to lower shipping and storage costs.

How does the proliferation of products, models, and options make the supply chain more difficult to manage? What are the advantages of downward substitution? What are the disadvantages? What are some products or industries that have been damaged by excessive part standardization?

Discuss some examples of modular and nonmodular products and processes. How do standardization strategies help managers deal with demand variability and the difficulty of making accurate forecasts?

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What are the advantages and disadvantages of integrating suppliers into the product development process? You are the CEO of a medium-sized apparel manufacturer, and you are considering a mass customization strategy for some of your products.

How will you decide which, if any, of your products are appropriate candidates for mass customization?

Standardization strategies help to manage demand variability and making accurate forecasts

In what way is a universal power supply a postponement strategy? What are the costs and benefits of a universal power supply feel free to make assumptions? How would such costs and benefits be different over the product life cycle?

What are the advantages of downward substitution

Besides deciding on a universal power supply, what other operational improvements can you suggest to HP Boise? What would be your recommendations about the adoption of a universal power supply?How do standardization strategies help managers deal with demand variability and the difficulty of making accurate forecasts?

What are the advantages and disadvantages of integrating suppliers into the product development process?/5(K). That's why Demand Solutions DSX accepts varied inputs — including customer sales forecasts, management overrides, anecdotal notes about future developments, and promotional curves — to help ensure detailed, accurate sales forecasts.

Financial Planning typically uses aggregated forecasts Demand Planning relies on a mix of aggregate and SKU -specific Demand Variability and Velocity Influence Forecast Accuracy p y Low % % % Strategies to Manage Volatility HIGH . Supply chains encompass the end-to-end flow of information, products, and money.

For that reason, the way they are managed strongly affects an organization's competitiveness in such areas as product cost, working capital requirements, speed to market, and service perception, among others. Standardization strategies help managers deal with demand variability and accurate forecasts in that by standardizing, the organization can reduce the uncertainty of forecasts 4.

by using aggregate forecasting across all the products thereby getting a more accurate forecast. Accurate demand forecasts, Cost efficient Push system, and Sufficient time for quality control. For Mark and Spencer's product design, what contributed to part of their success?

Having technologists involved in the product design and manufacturing process.

Supply chain strategies: Which one hits the mark? – Strategy – CSCMP's Supply Chain Quarterly