CHAPTER 3Trend and seasonality analysis

Trends, seasonal variations, and random fluctuations must be taken into consideration in planning manufacturing capacity, either by setting it high enough to meet the peak demand or by setting it lower and building ahead, or by a combination of both approaches. These decisions should be based on a quantitative analysis of the structure of the demand as it varies overtime. It can be focused on one product or on a product family. In the case of the product family, the aggregation of demand for multiple products may require caution when not all products in a family require the same amounts of resources, and the aggregation of demand may require assigning weights based, for example, on the number of components ...

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