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• Forecasting -A statement about the future value of a variable of interest.
• 1. PLAN THE SYSTEM - Planning the system generally involves long-range plans about the type of products and services to offer, what facilities and equipment to have, where to locate and so on.
• • PLAN THE USE OF THE SYSTEM Planning the use of the system refers to the short-range and intermediate-range planning, which involves task such as planning inventory and workforce levels, planning purchases and production, budgeting, and scheduling.
• Accounting 


  • New product/process cost estimates
  • Profit projections
  • Cash management
• Finance


  • Equipment replacement needs
  • Timing and amount of funding/borrowing needs
• Human Resources 


  • Hiring activities, including recruitment, interviewing, training
  • Layoff planning, including outplacement, counseling
• Marketing activities


  • Pricing
  • Promotion
  • E-business strategies
  • Global competition strategies
• MIS 


  • New/revised information systems
  • Internet services
• Operations 


  • Schedules
  • Capacity planning
  • Work assignments and workloads
  • Inventory planning
  • Make-or-buy decisions
  • Outsourcing
  • Project management
• Product and Service Design 


  • Revision of current features
  • Design of new products or services
• ELEMENTS OF A GOOD FORECAST

  1. The forecast should be timely.

  2. The forecast should be accurate.

  3. The forecast should be reliable.

  4. The forecast should be expressed in meaningful units.

  5. The forecast should be in writing.

  6. The forecasting technique should be simple to understand and use.

  7. The forecast should be cost-effective.
• EXECUTIVE OPINIONS

  A small group of upper-level managers (e.g., in marketing, operations, and finance) may meet and collectively develop a forecast. This approach is often used as a part of long-range planning and new product development. 
• SALESFORCE OPINIONS

  Members of the sales staff or the customer service staff are often good sources of information because of their direct contact with consumers. They are often aware of any plans the customers may be considering for the future.
• CONSUMER SURVEYS

  Because it is the consumers who ultimately determine demand, it seems natural to solicit input from them. In some instances, every customer or potential customer can be contacted.
• TIME SERIES – A time-ordered sequence of observations taken at regular intervals (e.g., hourly, daily, weekly, monthly, quarterly, and annually).
• 1. TREND

  Refers to a long-term upward or downward movement in the data. Population shifts changing incomes, and cultural changes often account for such movements.
• 2. SEASONALITY

  Refers to short-term, fairly regular variations generally related to factors such as the calendar or time of day. Restaurants, supermarkets, and theaters experience weekly and even daily “seasonal” variations.
• 3. CYCLES

  Are wavelike variations of more than one year’s duration. These are often related to a variety of economic, political, and even agricultural conditions.
• 4. IRREGULAR VARIATIONS

  Are due to unusual circumstances such as severe weather conditions, strikes, or a major change in a product or service.They do not reflect typical behavior, and their conclusions in the series can distort the overall picture.