Successful organizations are also those who are able to make relatively accurate forecasts about the future needs (inventory, facilities, capacity, manufacturing, manpower) for the products produced or the services delivered.
Forecasting is an uncertain science since it calls for predictions but current theoretical and mathematical models (quantitative and qualitative) make it possible for organizations to predict with an acceptable margin of error. Think about it this way; without forecasting organizations would always be responding rather than acting.
- Select one industry from the list below: Bank, restaurant, health clinic/hospital, airline, or university.
- What specific variables would be needed by that organization in order to forecast? Be sure you explain why you selected each variable and why it is important to forecasting.
- Which variables are used for short-range forecasting, long-range forecasting, or for both. Make sure you support your selections.