Forecasting practices essay

However, business forecasting is often done poorly, and is frequently confused with planning and goals. They are three different things. is about predicting the future as accurately as possible, given all of the information available, including historical data and knowledge of any future events that might impact the forecasts.

According to literature forecasting can be defined: “Forecasting is predicting, projecting, or estimating some future event or condition which is outside an organization’s control and provides a basis for managerial planning” (Golden J. et.al, 1994, p.33)

Forecasting is a common statistical task in business, where it helps to inform decisions about the scheduling of production, transportation and personnel, and provides a guide to long-term strategic planning. However, business forecasting is often done poorly, and is frequently confused with planning and goals.

Measures to Increase the Effectiveness of Forecasting: Forecasting provides information to facilitate decision-making and planning. In the complex and turbulent environment, forecasts may go wrong and so would the plans based on these forecasts. This may prove hazardous for the company but making plans not based on forecasts is more hazardous.