Question

In: Operations Management

what is forecasting/inventory level?

what is forecasting/inventory level?

Solutions

Expert Solution

FORECASTING.

Forecasting is the method of making forward-looking forecasts based on past and current evidence, and most generally through pattern analysis. A commonplace illustration may be a calculation of any interest variable at a defined future date. The forecast is a more general concept although close.

According to Evan J. Douglas, "predicting can be described in future time periods as a method of seeking values for demand."

In Cundiff and Still's terms, "predicting is a prediction of revenue over a given future duration focused on the marketing strategy planned and a collection of specific uncontrollable and competitive factors."

Projections enable a company to take specific strategic decisions, such as preparing the manufacturing cycle, buying raw materials, handling funds. And the quality of the product to determine. A company can predict demand by taking advantage of qualified analysts or market analysis firms to produce its own forecasts, called guess prediction. In the next segment let's address the importance of market forecasting.

INVENTORY LEVEL

, The actual quantity of a commodity supplied by a firm. A traditional inventory manager can use the inventory volume and selling levels of a company to assess the best period to either create more, whether they control the factory of a supplier, or to buy more of the commodity is kept as stock in a retail store.


Related Solutions

what is forecasting inventory level? give an example?
what is forecasting inventory level? give an example?
Discuss the positive relationship between Assembly Warehouse and forecasting/inventory level from a manufacturer's perspective?
Discuss the positive relationship between Assembly Warehouse and forecasting/inventory level from a manufacturer's perspective?
Discuss the positive relationship between Assembly Warehouse and forecasting/inventory level from a manufacturer's perspective?
Discuss the positive relationship between Assembly Warehouse and forecasting/inventory level from a manufacturer's perspective?
What is business forecasting? Explain the stages of development for business forecasting. Why is business forecasting...
What is business forecasting? Explain the stages of development for business forecasting. Why is business forecasting and predictive analytics necessary for success? Are there ethical, legal or faith issues to consider in this process?
What is quantitative forecasting to a researcher?
What is quantitative forecasting to a researcher?
forecasting is what type of analytic technique
forecasting is what type of analytic technique
what could be the impact of blockchain on forecasting ?
what could be the impact of blockchain on forecasting ?
what does forecasting mean to managers?
what does forecasting mean to managers?
What are the four methods of forecasting available?
What are the four methods of forecasting available?
What is the difference between absorption and variable costing and why does inventory level which is...
What is the difference between absorption and variable costing and why does inventory level which is reported on the Balance Sheet affect net income which is reported on the Income Statement? How is the accounting definition of an asset related to the decision to use absorption vs. variable costing?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT