OPER-3006EL Chapter Notes - Chapter 4: Delphi Method, My5, Demand Forecasting
16 Sep 2018
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Document Summary
Forecasting the art and science of predicting future events. A forecast is usually classified by the future time horizon that it covers. These fall into 3 categories: short-range forecast up to 1 year, but generally less than 3 months; used for planning purchasing, job scheduling, workforce levels, job assignments, and production levels. Intermediate and long-run forecasts deal with more comprehensive issues and support management decisions regarding planning and products, plants, and processes. Products, and even services, do not sell at a constant level throughout their lives. * the emphasis in this book will be on demand forecasting. Good forecasts are of critical importance in all aspects of a business: the forecast is the only estimate of demand until actual demand becomes known. Forecasts of demand, therefore, drive decisions in many areas. The impact of product demand forecast on 3 activities is as follows . Hiring, training, and laying off workers all depend on anticipated demand.
