ma2 - Chapter 4: Forecasting Forecasting is the process of...

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Chapter 4: Forecasting Forecasting is the process of predicting a future event. It is the underlying basis of all business decisions. Forecasting Time Horizons: -Short-range forecast: 3 months—1 year involving purchasing, job scheduling, workforce levels, job assignments, production levels -Medium-range forecast: 3 months—3 years involving sales and production planning, budgeting -Long-range forecast: 3 plus years involving new product planning, facility location, and research and development Medium/long range forecasts deal with more comprehensive issues and support management decisions regarding planning and products, plants and processes. Short-term forecasting employs different methodologies than longer-term. They also tend to be more accurate. Influence of Product Life Cycle: Introduction, Growth, Maturity, Decline -Introduction and growth require longer forecasts than maturity and decline -As product passes through life cycle, forecasts are useful in projecting staffing levels,
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ma2 - Chapter 4: Forecasting Forecasting is the process of...

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