MRP starts with customer orders and forecast demand (see p. 439). Analyse how your case company gets data about (potential) future orders, and indicate which of the two sources above is more important.
The “Early Booking” Bonus
In recent years, Club Med has practiced a deliberate policy of “early booking”, an incentive well-received by customers which was stepped up in 2008. On the strength to this approach, bookings for winter 2009, like those for summer 2008, got off to a fast start initially. Although the economic crisis has created a certain “wait-and-see” attitude and a pronounced trend for late bookings, the positive effects of early-booking remain evident. Boosted by this policy, sales for summer 2009 are also off to an encouraging start.
Because of the early booking bonus, which is specially introduced because of the economic crisis, Club Med can predict the amount of customers for the season in some way. When Club Med has an estimate they can predict future trends, although this is still hard to do.
One of Club Med’s next steps is optimizing the Growth Model by additional capacity. “The top priority is to develop capacity that is very upscale, flexible, prefinanced and highly profitable. Such is the new concept for our villas and chalets”, is what they say. In this way Club Med wants to become somewhat dynamic.
The forecast command is the most important source to indicate future orders, because of the trends and knowledge the company already has. By predicting these trends, the company can adapt itself to the demand. However, Club Med wants to improve dynamic. -------------------------------------------------
What are the possibilities for the use of ERP in the supply network of your case company? As told in the Book we know that ERP is the integration of all resource planning systems into one single organization. Some advantages of the use of ERP:
* Visibility: By combining all the company’s systems into one and letting them...
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