Discussion Questions

What is a qualitative forecasting model, and when is its use appropriate?

Identify and briefly describe the two general forecasting approaches.

Suppose you need to forecast the amount of relief aid needed following an earthquake. What type of forecast do you think is the most appropriate: qualitative or quantitative, and why? Is CPFR applicable in this case?

Briefly describe the steps that are used to develop a forecasting system.

A skeptical manager asks what medium$-$range forecasts can be used for. Give the manager three possible uses$/$purposes$.$

Explain why such forecasting devices as moving averages, weighted moving averages, and exponential smoothing are not well suited for data series that have trends.

What is the basic difference between a weighted moving average and exponential smoothing?

What three methods are used to determine the accuracy of any given forecasting method? How would you determine whether time$-$series regression or exponential smoothing is better in a specific application?

Research and briefly describe the Delphi technique. How would it be used by an employer you have worked for?

What is the primary difference between a time$-$series model and an associative model?

What type of forecasting method would you recommend to a start$-$up retailer in terms of quantities, number of products, ete.? Will you use the same method after say five years of operation? Explain.

What effeet does the value of the smoothing constant have on the weight given to the recent values?

Explain the value of seasonal indices in forecasting. How are seasonal patterns different from cyclical patterns?

Which forecasting technique can place the most emphasis on recent values? How does it do this?