Discuss forecasting methods used in a modern corporation. Include qualitative and quantitative methods commonly used.© BrainMass Inc. brainmass.com October 25, 2018, 6:27 am ad1c9bdddf
Forecasting utilizes past data to predict the future. The ability to forecast the future is very vital to the profitable existing of modern corporations. With it, corporations can respond efficiently to the needs of the business.
Free MBA Resources (2008) clearly illustrated the following advantages of forecasting to modern businesses:
(a) Forecasting plays a key role in managerial planning and supplies vital facts and crucial information.
(b) Forecasting improves the quality of managerial personnel by compelling them to think through the future, to look ahead and to make provision for it.
(c) Forecasting ensures better utilization of resources by extending the frontiers of control in several directions and by revealing the areas where control is lacking.
(d) The employees are trained for accepting changes without any serious resistance as well as for facing unexpected occurrences courageously.
(e) Forecasting steers the ...
The solution describes quantitative and qualitative forecasting methods used by modern corporations. This solution is 432 words and includes four references for further inquiry.
Manychip Corp prepares to meet demand and capacity requirements for its planned future growth, you've been asked to review the current forecasting strategy and help implement a new strategic plan for forecasting demand. The new forecasting plan ties directly to the overall strategic planning methodology established by the company. The company historically has used a time series method. The forecasting methods under consideration are the following:
? Qualitative: human judgment, usually best used when little data is available
? Simulation: the use of computer models or judgment to imitate customer behavior
? Causal: used when there is a direct tie between demand and an environmental factor, such as cold weather
? Time series: the use of historical data to predict future needs
1. Identify which forecasting technique or multiple techniques should be used in the future for Manychip's strategy. Are there other techniques available that are not listed above?
2. Explain the technique you identify and give an example of how it is used in the manufacturing, retail, and health care industries.
3. Detail if one of the four techniques listed above should NOT be used and why.
4. Evaluate the significance of forecasting error for the technique or techniques you have selected. What is the impact of error on your chosen technique.View Full Posting Details