Business Administration - Retail Management OPM400 Chapter Notes - Chapter 3: Computer Data Storage, Information System, Shortage
24 Oct 2016
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Document Summary
Forecasting is to guide every aspect of an organization, from the strategic level all the way down to an organization"s day-to-day activities: example: inventory levels, and how much they should be replenished. Required for all organizations (manufacturers, services providers, and ever non-profits) Rarely 100% accurate: example: without estimating customer demand, accounting would have no basis for budgeting. Finance would be unable to estimate funding required. Human resources would be unable to plan staffing requirements. Marketing would be unable to evaluate the effectiveness of promotions. Information systems would be unable to ensure technical capabilities. Operations and supply chain would be unable to appropriately prepare suppliers, capacity and inventory. Perfect forecast is impossible: some business environment can"t be predicted with certainty. Continual review and updating of new data are basic to successful forecasting. Some organizations seek charities (food and banks) to which to donate their excess inventory, in some cases the excess ends up in land fills.
