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12123019
MBA
Ahsan Iqbal
12123019
MBA
Note that it is not necessary to improve the cycle time for all our customers. The key is
to focus on the source of most variability in our demand which is the main cause of
forecast error. If the unit error from a particular customer is small, then the buffer stock
we carry for that customer is also small. Customers with large unit errors in their forecast
are the ones that force we to carry more buffer stock these are the ones that you should
work with to improve accuracy and to reduce cycle time.
Run processes in parallel if possible, and eliminate the activity completely if it does not
add value.
Look for changes in processes and technology that would eliminate the most time from
your forecast and response cycle.
Ahsan Iqbal
12123019
MBA