PRODUCTION & OPERATIONS MANAGEMENT

1. Discuss the 3 forecasting techniques and give examples of each:

Delphi method

It is a series of surveys of expert opinion. A panel of experts is asked to speculate on

questions about their field in then or more years’ time. If there is a lack of consensus
after this first stage, the organisers circulate all responses to all members of the panel. A
second round of opinion gathering follows. Organisers expect some narrowing of
differences and members begin to understand others’ points of view. Rounds continue as
necessary until the panel achieves consensus.

The objective of the Delphi technique is to produce a relatively narrow spread of opinions
within which the opinions of the majority lie.

Customer surveys

This technique attempts to gather accurate, quantitative data by carrying out customer
research. Customer surveys ask about or try to observe actual behaviour. More future –
orientated information comes from asking about future spending plans and this can be
gained either by surveys or through consumer panels that meet to discuss ideas and assess
product proposal

2. Giving examples discuss the following concepts as applied in Production and

Operations management.

Economic Order Quantity