Forecasting Assessment Of An Organization Essay

1043 Words Jun 22nd, 2016 5 Pages
1.0 Introduction
Forecasting refers to the prediction of the future with the highest possibility of accuracy given that each and every information is provided, this including any historical data and any information involving future events that may ultimately influence the forecasts. (Hyndman, 2009). Expounding further, forecasting may refer to the process where an event in the future is estimated through forward past data casting, where the data is combined systematically in a manner that is predetermined in order to obtain the future estimate. Furthermore, prediction may refer to the estimating process of a future event where instead of relying on just past data, subjective considerations are also factored in which should not be necessarily combined in a manner that is predetermined (Gor, n.d.). Business forecasting mainly tries to predict the demands of customers in the future for the services and goods of that particular company or business. This assists management in that it is used when making decisions about production scheduling, in guiding strategic planning in the long-term and making informed decisions about personnel and transport (Hyndman, 2009).
When predicting the future in forecasting, various methods can be used which either may fall under qualitative or quantitative (Hyndman, 2009). Basically there are two kinds of events with one being the controllable internal events which originate from within the organization or business and example include legal, new…

Related Documents