What is forecasting? What information is forecasted at your organization? Which forecasting methods are used at your organization? What information at your organization is not currently being forecasted that could be forecasted to increase productivity or decrease waste? Forecasting is the process of making statment’s about future events whose actual outcomes have not yet been observed. Risk and uncertainty are central to forecasting and it is good practice to indicate the degree of uncertainty when calculating forecasts.
Selection of a forecast method should be based on objectives and market conditions (data). There are many types of forecast methods as follows: 1. Rolling Forecast (moving average, weighted moving average, exponential smoothing and autoregressive) 2. Casual Forecast (regression, econometrics and autoregressive moving average) 3. Judgmental Forecast (surveys, delphi method, technology and scenario building) Forecasting is the process by which companies think over and prepare for the future. It involves predicting the future outcome of various business decisions.
This includes the future of the business as a whole, the future of an existing or proposed product. Forecasting is used to answer important questions such as how much profit will our business make; how much demand will be there for the business product or service? Currently in my organization what is not currently being forecasted is our enrollment of students in our summer program. This will surely increase our revenue. How much will it cost to produce the product or offer the service? How much money will the company need to borrow?