Being skilled in forecasting demand is vital to an organization regardless of the industry. Forecasting is the basis for budget and control, sales, production, services, and much more. Forecasting demand can be for long-term or for tactical, day-to-day operations. Nevertheless, effective forecasting of demand is imperative for the success of a domestic or global business operation.
Additionally, forecasting demand is not an exact science and there are margins of error in the estimation process. Gaining the understanding of the forecasting models and techniques and being able to explain the differences in estimates of error and their link to rationally based adjustments is also a skill necessary in the global environment.
In this Discussion, you will evaluate forecasting models and techniques to meet the demands of a global business and will explain the differences between estimates of error and their connection to rationally based adjustments.
To prepare for this Discussion, read Chapters 7 and 9 of the course text and your other Required Readings, and consider the qualitative forecasting models and techniques and their effectiveness in meeting the requirements of a global business.
Post an evaluation of qualitative forecasting models and techniques to meet the demands of a global business. In your evaluation, do the following:
Explain the importance of forecasting to planning and decision making for a business.
Explain the differences between estimates of error (i.e., sources and measurement) and their relevance to rationally based adjustments.
Identify a model of demand management that would be well-suited to the retail food industry, and include scholarly references that support your rationale.
Be sure to support your work with a minimum of two specific citations from this week's Learning Resources and one or more additional scholarly sources.