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Forecasting and Forecasting Errors in Business

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Should your division be using moving average, weighted average, or exponential smoothing in forecasting calculations? Why?
What are some sources of forecast errors?
What is a control chart, and what is the benefit to using them for forecasting errors?
What are aggregate capacity requirements, and how could they be applied?

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Solution Summary

Discusses forecasting errors, control chart, aggregate capacity requirements.

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Should your division be using moving average, weighted average, or exponential smoothing in forecasting calculations? Why?

I will be selecting exponential smoothing because the trends in the last few years have been quite different as compared to previous years and thus, I want to give more weightage to the demand in the more recent periods as compared to earlier periods.

What are some sources of forecast errors?

Some of the sources of forecast errors include wrong use of forecasting ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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