Chapter03_ - MSB 354 3-1 3 Forecasting Contents  Part 1 Introduction Introduction to Operations Management Competitiveness Strategy and

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: MSB 354 3-1 3 Forecasting Contents  Part 1: Introduction Introduction to Operations Management Competitiveness, Strategy, and productivity  Part 2: Forecasting  Part 3: System Design  Part 4: System Operation 3-2 Questions Weather forecast is one of the many forecasts used by some business organizations. How much will the economy grow over the next 5 years? Where is the stock market headed? What about interest rate? How will consumer tastes be changing? What will be the hot new product? How about the demand for new car in the next month? Forecasting answers all these questions . 3-3 3-4 Learning Objectives (con.)  Features and elements of a good forecast.  Steps in the forecasting process and approaches to forecasting.  Describe qualitative forecasting techniques and the advantages and disadvantages of each.  Describe quantitative forecasting techniques and the advantages and disadvantages of each. 3-5 Learning Objectives  Compare and contrast qualitative and quantitative approaches to forecasting.  Apply forecasting techniques for solving typical problems.  Describe two measures of forecast accuracy.  Describe two ways of evaluating and controlling forecasts.  Identify major factors to consider when choosing a forecasting technique. Forecasts People make and use forecasts all the times, both in their jobs and in every day life. Forecasts are the basis for many decisions. The more accurate forecast, the better prepared. Forecast : Predictions about future, Statement about the future value of a variable of interest such as demand. Forecasting is used in order to make informed decisions .- an integral part of operation manager’s job as a planner. Two types of forecasts in operations management. Long range forecast : aggregate estimates of overall demand. - covers several years or more: used in the strategic planning areas in OM. Short range forecast : estimates of individual goods & service - covers a day or week: scheduling, Inventory planning, ordering materials 3-6 3-7 Forecasts Forecasts affect decisions and activities throughout an organization, and are used to predict in diverse areas .  Accounting  Finance  Human resource  Marketing  MIS  Operations  Product/service design Two uses for forecasting : plan the system, plan the use of the system . Business forecasting pertains to more than predicting the demand . 3-8 Accounting Cost and profit estimates Finance Cash flow and funding needs Human resources Hiring/recruiting/training Marketing Pricing, promotion, strategy MIS IT/IS systems, services Operations Schedules, MRP, workloads Inventory M/G, project M/G Product/service design New products and services Examples of use of Forecas ts 3-9  Assumes that the same underling causal system that existed in the past will continue in the future ....
View Full Document

This note was uploaded on 12/06/2011 for the course MSB 354 taught by Professor Nam during the Fall '11 term at Korea Advanced Institute of Science and Technology.

Page1 / 89

Chapter03_ - MSB 354 3-1 3 Forecasting Contents  Part 1 Introduction Introduction to Operations Management Competitiveness Strategy and

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online