Forecasting as System Feedback
(1) What is your opinion on the question below?
Continue with analyzing feedback within your supply chain at EBBD. Forecasting is based on projecting historical information into the future to provide some type of goal or expectation for system performance. Forecasting can also be based on qualitative reasoning and correlating factors.
Regardless of how a projection is made, there will be forecast errors - the difference between what was predicted and the actual result. Forecast errors can be used as feedback to help improve future predictions.
Consider that forecasting can be a feedback process. How would you use forecasting to help you determine your weekly ordering decision of Kentucky Swamp Brew?