Question

In 200 words or more, Explain the main techniques used in ­employment planning and forecasting.

Answer 1

Forecasting techniques:

1. Qualitative forecasting are based on the opinion and judgment of consumers, such as Delphi method, market research, and historical life-cycle analogy.
2. Quantitative forecasting models are used to forecast future data as a function of past data. Simple and weighted moving averages, simple exponential smoothing, Poisson process model based forecasting and multiplicative seasonal indexes.
3. Average approach where the predictions of all future values are equal to the mean of the past data.
4. Naïve forecasts are equal to the last observed value.
5. Time series methods: Time series methods use historical data as the basis of estimating future outcomes.
6. Autoregressive moving average

Planning techniques:

1. Rough cut Capacity Planning: In this planning method we use past one year to eighteen months data to plan for net 2 years.
2. Long term capacity planning: In this method we use past one year to eighteen months data to plan for 3 to 5 years.
3. Demand Planning: We use time series demand planning using past 1 year to eighteen months data taking into account the seasonality.
   1. Often Demand Sensing is done using real time data to adapt to the changes of the market.