Forecasting
Successful organizations are also those who are able to make
relatively accurate forecasts about the future needs (inventory,
facilities, capacity, manufacturing, manpower) for the products
produced or the services delivered.
Forecasting is an uncertain science since it calls for
predictions but current theoretical and mathematical models
(quantitative and qualitative) make it possible for organizations
to predict with an acceptable margin of error. Think about it this
way: Without forecasting, organizations would always be responding
rather than acting.
Select one industry from the list below:
Bank, restaurant, health clinic/hospital, airline, or
university.
What specific variables would be needed by that organization in
order to forecast? Be sure you explain why you selected each
variable and why it is important to forecasting.
Which variables are used for short-range forecasting, long-range
forecasting, or for both. Make sure you support your
selections.
