Nissan

Forecasting-Ñ"ЬProcess of predicting a future event

Ñ"ЬShort-range forecast

ÐŽVUp to 1 year; usually less than 3 months

ÐŽVJob scheduling, worker assignments

Ñ"ЬMedium-range forecast

ÐŽV3 months to 3 years

ÐŽVSales & production planning, budgeting

Ñ"ЬLong-range forecast

ÐŽV3+ years

ÐŽVNew product planning, facility location

Ñ"ЬMedium/long range forecasts deal with more comprehensive issues and support management decisions regarding planning and products, plants and processes.

Ñ"ЬShort-term forecasting usually employs different methodologies than longer-term forecasting

Ñ"ЬShort-term forecasts tend to be more accurate than longer-term forecasts.

Ñ"ЬEconomic forecasts

ÐŽVAddress business cycle, e.g., inflation rate, money supply etc.

Ñ"ЬTechnological forecasts

ÐŽVPredict rate of technological progress

ÐŽVPredict acceptance of new product

Ñ"ЬDemand forecasts

ÐŽVPredict sales of existing product

Ñ"ЬHuman resources ÐŽV hiring, laying off, and training of workers depend on forecasting.

Ñ"ЬCapacity ÐŽV when capacity is inadequate, the resulting shortages can mean undependable delivery, loss of customer, and market share.

Ñ"ЬSupply-Chain Management ÐŽV good supplier relations and the ensuring price advantages for materials and parts depend on accurate forecasting

7 STEPS of forecasting.

Ñ"ЬDetermine the use of the forecast

Ñ"ЬSelect the items to be forecasted

Ñ"ЬDetermine the time horizon of the forecast

Ñ"ЬSelect the forecasting model(s)

Ñ"ЬGather the data

Ñ"ЬMake the forecast

Ñ"ЬValidate and implement results

Qualitative Methods:

Ñ"ЬUsed when situation is vague & little data exist

ÐŽVNew products

ÐŽVNew technologyÑ"ЬInvolves intuition, experience

Quantitative Methods:

Ñ"ЬUsed when situation is ЎҐstableÐŽ¦ & historical data exist

ÐŽVExisting products

ÐŽVCurrent technology