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    Forecasting in operations management

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    Highline Financial Services, Ltd.

    Highline Financial Services provides three categories of service to its clients. Managing partner Freddie Mack is getting ready to prepare financial and personnel hiring (or layoff) plans for the coming year. He is a bit perplexed by the following printout he obtained, which seems to show oscillating demand for the three categories of services over the past eight quarters:

    Year Quarter A B C
    1 1 60 95 93
    2 45 85 90
    3 100 92 110
    4 75 65 90

    Year Quarter A B C
    2 1 72 85 102
    2 51 75 75
    3 112 85 110
    4 85 50 100

    Examine the demand that this company has experienced for the three categories of service it offers over the preceding two years. Assuming nothing changes in terms of advertising or promotion, and competition doesn't change, predict demand for the services the company offers for the next four quarters. Note that there are not enough data to develop seasonal relatives. Nonetheless, you should be able to make reasonably good, approximate intuitive estimates of demand. What general observations can you make regarding demand? Should Freddie have any concerns? Explain.

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    Solution Preview

    The response addresses the query posted in 844 words with APA references

    //Forecasting is a very important method for the purpose of predicting the future value of the specific variable or phenomenon. In this context, the demand of the company, Highline Financial Services, Ltd is forecasted on the basis of the past two years data provided, which is forecasted in 4 quarters for each year. Therefore, the below section examines the demand of this company and further some general points for the demand are also explored on the basis of the forecasted values. //

    Forecasting in Operations Management

    Forecasts are essential for every business organization for the purpose of maintaining and planning the future demands and fulfilling their costumer's requirements. Thus, for this purpose forecast techniques and methods are used for the decision-making (Albright, Winston & Zappe, 2014). Forecasting can be categorized into four basic types namely, time series analysis, qualitative analysis, causal relationship, and simulation. The qualitative analysis for forecasting purpose includes Delphi method, panel consensus, etc. This technique is used for the purpose of market research. Time series analysis is the statistical method used for the forecasting purpose in which the forecasting is done on the ...

    Solution Summary

    The expert examines forecasting in operations management. The response addresses the query posted in 844 words with APA references.