Week $4$ Discussion: Forecasts

$4848$ unread replies. $4848$ replies.

Forecasts are rarely perfect due to demand variability. However, capacity is planned based on the forecast. A retail store will plan staff and inventory levels based on expected sales. A call center will plan staffing based on the number of calls expected. A manufacturer will plan staffing, machine usage, raw material and finished goods based on expected customer demand.

Think about your company or another organization with which you are, or have been, involved.

What is important to forecast?

What forecasting method is used? $($Hopefully it is more sophisticated than, "Got a hunch? Buy a bunch!"

How accurate is the forecasting?

What are the consequences of poor forecasting?

If you are not involved with the forecasting process, you may need to do a little research by seeking out someone in your organization that is$.$