Purchase Solution

Suggestions to Avoid Forecasting Errors

Not what you're looking for?

Ask Custom Question

You have received a call from the manager of a firm where you helped set up a forecasting system. The manager, Dr. Nancy Waldron, expressed concern that forecast errors, although within the control limits, were too large, and wondered if there was anything else that could be done, or whether they would "just have to live with it." What would you suggest? Write a memo to Dr. Waldron.

How should I proceed to write this memo and what should be emphasized?

Purchase this Solution
Solution Summary

This case deals with errors in forecasting and the potential hazards of inaccuracy associated with forecasting techniques. It also reviews what should happen if forecasting parameters are tightened and the benefit to the firm.

Solution Preview

This info implies that the information provided to you for the forecasting system in the accepted control limits was still too broad to be of any value to her firm. I would take the approach that you want to respond to her concerns, and to do that, we should explore a greater level of detail in terms of ...

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Operations Management

This quiz tests a student's knowledge about Operations Management

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

View More Free Quizzes
Related BrainMass Solutions

  • How can an organization determine demand for its services

    Even after such determined efforts, wrong choice of forecasting methods and forecasting errors can spell trouble for the company and may lead to poor performance in meeting market demand in the future or lead to situation of overproduction and wastage

  • Parker Earth Moving: Implement revised business practice using forecasting

    Fifth, forecasting should be used to synchronize the production with required shipping dates. This will help avoid delays of deliveries.

  • Contingency Plan to Help Errors in Prescription Drugs

    543777 Contingency Plan to Help Errors in Prescription Drugs What contingency plan can you use from the FDA to help with errors in prescription drugs? The FDA offers a few suggestions on ways to avoid medication errors.

  • Managing Cultural Differecnes in Global Business Ventures

    In reference to a cross-cultural business venture, this solution explores cultural difficulties between workers and customers in different countries, provides examples of strategies to manage diversity and to avoid errors and suggests policies to consider

  • Forecasting and Forecasting Errors in Business

    A control chart is a visual tool that can be used to monitor the forecasting errors. Control charts helps in identifying non-randomness in forecasting errors.

  • Forecasting in Business

    An important cause of forecasting errors is placing too much reliance on judgment compared with statistical errors. In some causes interference by top management in forecasting leads to errors. 3.

  • Toyota Motors Forecasting

    They need your help to evaluate alternative forecasting methods and provide suggestions.

  • Supply Chain management

    The two errors in the critical area of supply chain are 'Demand Forecasting' and 'Raw material Procurement'. Forecasting needs to be accurate as it forms the basis for planning activity in the supply chain.

  • EBBD forecast

    Report to Danny Wilco To: Danny Wilco From: Me Subject: Forecasting at EBBD Background Following are suggestions for how to improve EBBD's short term forecasting on a monthly, quarterly and annual basis, as well as suggestions for longer

View More Related Solutions