Essays on Logistics Activities of Demand Forecasting and Customer Service Coursework

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The paper "Logistics Activities of Demand Forecasting and Customer Service" is a good example of business coursework.   Logistics is the overall planning and execution and organizing of the placement and movement of goods and other resources that are to support an organization or a functional unit within a designed system that is purposed to meet specific objectives. This involves the processes that are undertaken for the effective flow of goods and mobilized resources from their point of conception or origin to the place of consumption. Logistics incorporates both the supply chain and the inventory processes.

This implies that logistic management is the arm of the supply chain that focuses on the planning, implementation and the putting of controls that are aimed at enabling the effective, efficient forward and reverse storage and flow of goods, services and other relevant resources in addition to the related information from one point of origin to the other point of consumption based on the customer’ s needs (Pearson, 1999). The supply chain of management has three main components which include the logistics, local operations and customer service.

The three components have functions attached to them that affect the smooth and efficient flow of goods and services that will in turn meet and satisfy the consumer’ s needs. The functions of the components are well illustrated in the diagram below (Samaranayake, 2005). The supply chain Demand forecasting This is a proactive process where the supplier of certain goods and services determines the goods and services that are required. This involves determining the venue, time and the approximate quantity of the goods and services that will be required. This is the entire foundation on which logistic processes are built.

The function supports all the other logistical activities which include capacity planning, business planning and inventory planning. The forecast demand is based on 5 main characteristics which include the trend, time, season, cycle, average and the elasticity. Demand tends to always huddle around a definite level and at times it decreases and increases over time. Demand has a season where there are seasons of great and high demand and vice versa. Forecasting is done at three different levels which include the firm level, industry level and the total market level.

The demand forecasting is illustrated in the diagram below (Hendricks, 2003). (Hendricks, 2003) Types of demand forecasts The demand forecast is of two types namely the passive and the active forecast. The passive forecast involves the forecast of factors that are predominantly assumed to be invariable over a certain time period however, the changes are always ignored. The active forecast involves the factors that are being forecast are expected to be flexible and subject to changes (Hendricks, 2003). Approaches in forecasting Different firms do forecast in a method that is specific to the firm itself.

Many techniques in forecasting have been developed and utilized by various logistic firms and have yielded different results. A logistic system that employs the use of algorithms that are used to generate substitute demand forecasts. The existing logistic techniques that are often used are classified into four approaches. These are; judgmental approach, experimental approach, casual approach and the time-series approach (Hendricks, 2003).


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