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    Forecasting: Presented By:-Nikita Saini Mba 4

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    KBC KGF
    This document discusses forecasting and provides details on the meaning, types, steps, benefits, and methods of forecasting. It defines forecasting as predicting future events by taking historical data and projecting it using mathematical models adjusted by managerial judgment. There are three main types of forecasts: economic, technological, and demand forecasts which drive production planning. The key steps in a forecasting system include determining the item and time horizon to forecast, selecting a model, gathering data, making the forecast, and validating/implementing results. Benefits of forecasting include helping predict the future, learning from the past, improving cash flow and staffing. Both qualitative and quantitative forecasting methods are discussed.

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    Forecasting: Presented By:-Nikita Saini Mba 4

    Uploaded by

    KBC KGF
    30 views8 pages
    This document discusses forecasting and provides details on the meaning, types, steps, benefits, and methods of forecasting. It defines forecasting as predicting future events by taking historical data and projecting it using mathematical models adjusted by managerial judgment. There are three main types of forecasts: economic, technological, and demand forecasts which drive production planning. The key steps in a forecasting system include determining the item and time horizon to forecast, selecting a model, gathering data, making the forecast, and validating/implementing results. Benefits of forecasting include helping predict the future, learning from the past, improving cash flow and staffing. Both qualitative and quantitative forecasting methods are discussed.

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    FORECASTING

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    This document discusses forecasting and provides details on the meaning, types, steps, benefits, and methods of forecasting. It defines forecasting as predicting future events by taking historical data and projecting it using mathematical models adjusted by managerial judgment. There are three main types of forecasts: economic, technological, and demand forecasts which drive production planning. The key steps in a forecasting system include determining the item and time horizon to forecast, selecting a model, gathering data, making the forecast, and validating/implementing results. Benefits of forecasting include helping predict the future, learning from the past, improving cash flow and staffing. Both qualitative and quantitative forecasting methods are discussed.

    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    30 views8 pages

    Forecasting: Presented By:-Nikita Saini Mba 4

    Uploaded by

    KBC KGF
    This document discusses forecasting and provides details on the meaning, types, steps, benefits, and methods of forecasting. It defines forecasting as predicting future events by taking historical data and projecting it using mathematical models adjusted by managerial judgment. There are three main types of forecasts: economic, technological, and demand forecasts which drive production planning. The key steps in a forecasting system include determining the item and time horizon to forecast, selecting a model, gathering data, making the forecast, and validating/implementing results. Benefits of forecasting include helping predict the future, learning from the past, improving cash flow and staffing. Both qualitative and quantitative forecasting methods are discussed.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    FORECASTING

    Presented By:-
    Nikita Saini
    MBA 4th (25)
    MEANING

    • It is an art and science of predicting future events. Forecasting may involve taking historical data
    and projecting them into the future with some sort of mathematical model.
    • It is a mathematical model adjusted by a manager’s good judgment. Effective planning in both
    the short and long run depends on a forecast of demand for the company’s products or services.
    TYPES OF FORECASTING

    • Organizations use three major types of forecasts in planning future operations.


    • Economic forecasts: It addresses the business cycle by predicting inflation rates, money
    suppliers, housing starts, and other planning indicators.
    • Technological forecasts: These are concerned with rates of technological progress, which can
    result in the birth of exciting new products, requiring new plants and equipment's.
    • Demand forecasts: These are projections of demand for a company’s products or service. These
    are forecasts , also called sales forecasts, drive a company’s production, capacity, and scheduling
    systems and serve as inputs to financial, marketing, and personnel planning.
    STEPS IN FORECASTING SYSTEM

    • Determine the use of the forecast: Disney uses park attendance forecasts to drive staffing,
    opening time, ride availability, and food
    • suppliers.
    • Select the item to be forecasted: For Disney World, there are six main parks. A forecast of daily
    attendance at each is the main number that determines labor, maintenance, and scheduling.
    • Determine the time horizon of the forecast: is it short, medium, or long term? Disney develops
    daily, weekly, monthly, annual, and 5-year forecast.
    • Select the forecasting model: Disney uses a variety of statistical models like, including moving
    averages, econometrics, and regression analysis. It also employs judgmental, or non-quantitative,
    models.
    • Gather the data needed to make the forecast: Disney’s forecasting team employs 35 analysts
    and 70 field personnel to survey 1 million people/businesses every year. It also uses the firm
    called Global Insight for travel industry forecasts and gathers data on exchange rates, arrivals
    into the U.S., airline specials, Wall Street trends, and school vacation schedules.
    • Make the forecast.
    • Validate and implement the result: At Disney, forecasts are reviewed daily at the highest levels
    to make sure that the model, assumptions, and data are valid. Error measures are applied; then
    the forecasts are used to schedule personnel down to 15-minutes intervals.
    BENEFITS OF FORECASTING

    • Helps to predict the future


    • Learnt from the past
    • Helps you know your customers better
    • Manages cash flow and credits
    • Improved staffing
    FORECASTING METHODS

    Qualitative Quantitative
    • Delphi Method • Trend Analysis

    • Panel Discussion • Seasonal Adjustments

    • Experts Opinion • Graphical Method

    • Focused Group • Econometric Modelling

    • Historical Analogy • Life Cycle Modelling


    • Moving Average
    THANK YOU

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