STHM 3329 Study Guide - Final Guide: Demand Forecasting, Mean Time Between Failures, Econometrics

• School: Temple University
• Department: Sport, Tourism and Hospitality Management
• Course: STHM 3329
• Professor: Sheridan

Document Summary

A systematic way of organizing information from the past to infer the occurrence of an event in the future . Demand forecasting may be characterized as predicting the most probable level of demand that is likely to occur given changing circumstances or, when alternative policies are implemented, to predict what different levels of demand may result. Demand is not the only variable of interest to forecasters: manufacturers also forecast worker absenteeism, machine availability, material costs, transportation and production lead times, etc. Besides demand, service providers are also interested in forecasts of population, other demographic variables, weather, etc. Forecasts are essential for marketing, production and financial planning. Short run: 1 year, for current operations. Intermediate run: 2 to 5 years, decisions on capacity expansion, changes in products & services, etc. Long run: > 5 years, planning and policy. Behavior is complex (multiple motives, many decisions, lots of competition). Explore potential markets and expected volume of sales;