DISTRIBUTION MANAGEMENT

Module 7: Forecasting and Demand Planning

Individual Activity/Seatwork

Instructions:

Answer the questions provided below. Indicate your name and section as file name.

1. What is the distinction between forecasting and planning?

Whereas forecasting deals with future goals and projecting values towards the
future, planning is the organized means of attaining a specific objective. Planning
talks about organizing the necessary steps to achieve a goal, while forecasting is
the prediction of that goal.

2. Think of a pizza delivery franchise located near a college campus. What factors that
influence demand do you think should be included in trying to forecast demand for
pizzas?
One big influence in the demand would be your target audience. Judging by the
location, a good area of the customers would be from that college campus. The
pizza delivery franchise can now use forecasting to look into future goals, and
planning will be important in doing so. They can do steps such as catering to their
target audiences and adjusting prices according to their customers.

3. Discuss some forecasting issues that you encounter in your daily life. How do you make
your forecasts?
In my daily life, I use forecasting numerous times when I am in trading stocks.
Before I invest in something, I must use technical analysis to create a projected
future by taking numerous variables I have studied into account. Forecasting is
very important in stock trading since although you cannot fully predict the market,
you can use planning and create a forecast based on that. This is how you can
know what to do when opportunities arise.

4. Suppose that you were thinking about opening a new restaurant. How would you go
about forecasting demand and sales?
I must first assess what I want my restaurant to be. If it were to be a fast-food
restaurant, I must now assess my competition. By comparing my restaurant to its
competitors, I can then know my target audience. Once I know that, I can now
plan out pricing and products. Once I know what my restaurant is trying to
achieve, I can then use forecasting to project the demand and sales in a specific
time horizon.

Rubric for Individual Activity

CATEGORY 4 3 2 1
Organization Information is very Information is Information is The information
organized with organized with organized, but appears to be
wellconstructed well-constructed paragraphs are disorganized. 8)
paragraphs and paragraphs. not
subheadings. wellconstructed.
Quality of Information clearly Information Information Information has
Information relates to the clearly relates to clearly relates to little or nothing to
main topic. It the main topic. It the main topic. No do with the main
includes several provides 1-2 details and/or topic.
supporting details supporting details examples are
and/or examples. and/or examples. given.
Amount of All topics are All topics are All topics are One or more
Information addressed and all addressed and addressed, and topics were not
questions most questions most questions addressed.
answered with at answered with at answered with 1
least 2 sentences least 2 sentences sentence about
about each. about each. each.
Sources All sources All sources All sources Some sources
(information and (information and (information and are not accurately
graphics) are graphics) are graphics) are documented.
accurately accurately accurately
documented in documented, but documented, but
the desired a few are not in many are not in
format.
the desired the desired
format. format.

Paragraph All paragraphs Most paragraphs Paragraphs Paragraphing

Construction include include included related structure was not
introductory introductory information but clear and
sentence, sentence, were typically not sentences were
explanations or explanations or constructed well. not typically
details, and details, and related within the
concluding concluding paragraphs.
sentence. sentence.