What is Forecast Management?
Forecasting is the technique of developing business plans that reduce the uncertainty of the future. In forecasting, most managers want that the demand and the supply should be equal.
And for this is essential to forecast the supply and the demanded space in the market. In forecasting, there are two important aspects of the forecast that is the expected level of demand and the degree of accuracy that is forecasted. And other than this there are two general approaches to forecasting and these are qualitative and quantitative. Contact us now for Forecasting Homework Help. In forecasting, three types of technologies are used that is given below.
a) Judgmental forecasts,
b) Time-series forecasts, and
c) Associative models.
What are Judgmental forecasts?
The first technique is known as judgemental forecasting, this work on subjective inputs from various sources. This is more useful when forecasting is done in a short period of time, and when the data is outdated, unavailable, or in other words, there is a limited time to collect it.
What are Time-series forecasts?
The second forecasting technique is time series forecasting, this is used when we want to identify specific patterns in the data, and observations and then used it for future forecasting. In this, the data is taken in the regular time interval.
What are Associative models?
The associative model is based on the equation that tells the effect of the predictor variable. This is used to identify the variable so that we can predict the necessary forecast. And this model is important when we calculate the forecast error. Here we calculate errors like ERROR= ACTUAL – FORECAST
Qualitative forecasting is subjective forecasting and quantitative forecasting involves the historical data of the organization. The first type which is a judgemental forecast is qualitative and another two are quantitative.