NAME : SARINA BINTI AWANG ID NO : 2019153717 COURSE CODE : OPM545 GROUP : NBO7B Question 1 (a)Describe two (2) benefits of forecasting in production planning and control. Forecasting is the estimation process of the goods. In this the firm consider the demand for its products in the market, based on this, they plan for material requirement. If the estimated demand is high, the production requirements and material requirement also higher and vice versa. The benefits of forecasting in production planning and control will helps: to develop good production schedules with availability of all inputs it minimizes the resource wastage up to zero level material availability is in time and without any scarcity to deliver goods based on orders to the customers to utilizes resources in optimum way collects data for better planning of the business (b)Explain two (2) examples of qualitative approach to forecasting. I.Sales Force Composite In this approach, each sales person estimates what sales will be in his or her region. These forecasts are then reviewed to ensure that they are realistic. Then they are combined at the district and national levels to reach an overall forecast. A variation of this approach occurs at Lexus, where every quarter Lexus dealer have a "make meeting." At this meeting, they talk about what is selling, in what colors, and with what options, so the factory knows what to build. II.Market Survey This method solicits input from customers or potential customers regarding future purchasing plans. It can help not only in preparing a forecast but also in improving product design and planning for new products. The consumer market survey and sales force composite methods can, however, suffer from overly optimistic forecasts that arise from customer input.
