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18 Cards in this Set
- Front
- Back
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What is the primary purpose of the (MAD) |
Measure the forecast accuracy. |
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Forecasting |
Art & Science of predicting future events |
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Short range forecast |
Up to one year |
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Medium range forecast |
3 Mo- 3Yr |
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Long range forecast |
3 years or more. |
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Which time horizon is best for new products, expenditures, locations, expansions and R&D? |
Long Range |
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What type of forecast is best for budgeting and operating analysis? |
Medium Range |
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Which type of forecast is the most accurate? |
Short range |
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___ forecasts address the business cycle by predicting inflation rates, money supplies, housing starts, and other planning indicators |
Economic |
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Technological forecasts |
Long term forecasts concerned w/ rates of tech. progress |
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____ forecasts are projections of demand for a company's product or service |
Demand |
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_______ focus on rapidly identifying and tracking customer desires |
Demand |
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7 steps in the forecasting system |
Determine the use of the forecast Select the items to be forecast Determine the time horizon of the forecast Select the forecasting model(s)Gather the data needed to make the forecast Make the forecast Validate and implement the results |
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Downfalls to forecasting: |
Outside factors, they assume stability |
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What is the Naive Approach? |
Just assuming that it is the same as before. |
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Exponential smoothing what is Ft-1 |
Last period forecast |
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Exp smoothing, what is At-1 |
Actual last period |
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Exp smoothing, what is a |
Smoothing constraint |
