Forecasting methods in business organizations
Forecasting Methods in Organizations January 24, 2004 Forecasting is not an easy task for any organization, especially those dealing with the complexities that come with organizations with multiple departments. As the text explains, developing a forecasting system is not easy. However it must be done because forecasting is fundamental to any planning effort. ... In the long run, forecasting is required as a basis for strategic changes, such as developing new markets, developing new products or services, and expanding or creating new facilities. ... ” The purpose of forecasting is to help your organization prepare the best they can. ... There are a few different methods used by organizations. Organizations, logically will select the method that gives them the clearest picture of what may be needed for future sales or services. In order to demonstrate the uses of these methods there are three different organizations I would like to discuss. Each organization uses a different method for forecasting. The different methods include Time Series Analysis, Qualitative, and Causal. Time Series Analysis According to the text, time series forecasting models try to predict the future based on past data. An example would be a company involved in sales that uses their past four weeks of sales to help in forecasting the fifth week of sales. ... George that relies heavily on the time series forecasting model. ... This is a big business here in St. ... Iworks continually uses the time series analysis to help in forecasting where their company may be at certain points throughout the year and through critical stages of the month.