Resiliency
The need to constantly connect the forecast to the rest of the supply chain plans so that the plan becomes demand-driven.
What is the interpretation of demand-driven?
This is a top-tier leading indicator of Supply Chain Health.
What is Demand Forecast Accuracy (DFA)?
It all started with this.
What is Material Requirement Planning (MRP)?
No account of demand variability (or any other form of variability for that matter) because the forecast is going to be “accurate".
What is deterministic?
S&OE
What is Sales & Operations Execution?
If the forecast changes, then immediately change all the plans calculated from that forecast.
What is the assumed beneficial tactic of supply chain synchronization?
This is perceived wisdom and best practice to run a supply chain.
What is key metrics and relationships between metrics?
For the vast majority of supply chain practitioners, this is what being demand-driven means.
What is driving the supply chain using a demand forecast?
Supply plans are always changed to try to accommodate X.
What is "inaccurate" demand forecast?
S&OP
What is Sales & Operations Planning?
Due to the fixation on accurate plans, no consideration is typically taken of the fact that the real-world supply chain is stochastic in nature and that supply chain planning needs to ...
What is uncertainty-driven (or “chaos-tolerant”) rather than demand-driven (aka forecast-driven or accuracy-driven)?
This is used to help focus on the metrics that matter and look at the interdependencies among the metrics to manage end-to-end supply chain trade-offs.
What is the Hierarchy of Supply Chain Metrics?
This is the assumption that a supply chain can be planned using ...
What is forecast of future demand as the input to the rest of the planning (e.g. inventory and production — i.e. being forecast-driven)?
The supply chain is demand-driven, with upstream plans derived from X.
What are downstream demand forecasts (at various levels of aggregation)?
KPI
What is Key Performance Indicator?
This is where the probability for different outcomes is calculated.
What is Probabilistic planning?
This is a best in class metric design to measure customer satisfaction and supply chain efficiency.
What is Perfect Order?
If you know what the demand for your products is going to be, then you can calculate how much you need to have in inventory, to produce in manufacturing and to buy from suppliers to ...
What is satisfy future sales?
Compensate for demand uncertainty by X.
What is scenario planning or range forecasting (such as, best case, likely case and worst case)?
MRP
What is Material Requirements Planning?
Model this nature of the real-world supply chain to help determine where and how to effectively mitigate against uncertainty.
What is stochastic?
This is the focus on the demand forecast to improve its accuracy and connect that to all of the other supply chain metrics.
What is being Demand-Driven?
A top obstacle that supply chain professionals identify as preventing their supply chain from achieving its goals and objectives.
What is forecast accuracy?
These visualize and monitor supply chain execution to try to pick up when the original plans are wrong when they should be addressing the planning issues.
What are control towers?
VUCA
What is volatility, uncertainty, complexity, and ambiguity?