Question

Directions

In this Assessment, you will compose and informative essay in a minimum of 3 full pages (minimum 750 words) in which you specifically address the parts listed below.

Part 1: Examine the business concepts provided below:

Forecasting

Select a part of forecasting to evaluate based upon your prior reading in the eBook. Conduct online research to support your writing with credible sources. In particular, demonstrate your knowledge of how forecasting supports operations management efforts. Select one method of forecasting as presented in the eBook that you find potentially useful in your own career. Evaluate how you would apply it in a real-world business setting.

Inventory Management

Select a part of inventory management to evaluate based upon your prior reading in the eBook. Conduct online research to support your writing with credible sources. In particular, demonstrate your knowledge of how inventory management supports operations management efforts. Select one method of inventory management as presented in the eBook that you find potentially useful in your own career. Evaluate how you would apply it in a real-world business setting.

Part 2: Close your paper with the following observations from your research:

The importance of forecasting and inventory management within the context of operations management. Make sure you evaluate the purpose of forecasting and inventory management within operations management, as you close your paper, with skilled professional reflection and commentary.

Ensure each topic is covered to appropriate breadth and depth demonstrating knowledge of the module concept.

Please provide this ASAP.

Thanks

Answer 1

Forecasting refers to the process of anticipating the future based on historical and current statistics and information basically facilitating to study and examine the business trends. Thus it is regarded as a decision-making tool that facilitates business administrators in budgeting, planning and estimating future growth. Furthermore with a strategic approach in business operation permits to set goals that can be correlated with organization long-term objectives and then recognize initiatives that can indeed facilitate to reach the set targets.

Thus business makes use of various strategies and policies that can enable them to reach their goals. Furthermore the most crucial factor in a business operation is to forecast realistic goals and then frame logical and reasonable business policies that indeed can facilitate the enterprise to attain those predetermined goals.

Qualitative forecasting techniques are subjective based on the view point and conclusion of customers and experts and are most suitable when historical information and statistics are not available. Furthermore they are normally applied to intermediary or long-range decisions. Thus qualitative forecasting methods are regarded as well-versed and up to date opinion and judgment normally based on Delphi method, market research and historical correlation and comparison.

Quantitative forecasting methods are normally applied to forecast prospective information and statistics normally based on the study and examination of past data. They are suitable to use when historical numerical information is available and when it is rational and logical to presuppose that some of the patterns in the information are anticipated to persist into the future.

Inventory management refers to the procedure of ordering, storing and using business inventory such as raw materials, components and finished goods. Thus an appropriate inventory management system facilitates statistics and data which indeed can assist business administrators to efficiently manage the flow of materials, efficiently make use of individuals and equipment, effectively organize internal activities and communicate with consumers.

Thus inventory management indeed facilitates to provide valuable data and statistics to business administrator ro enable them to make correct and timely decisions in order to efficiently and effectively administer their business operations. Furthermore inventory management is very crucial and significant for organizations of any size which indeed facilitates to identify and acknowledge when to restock certain items, exact quantity to procure or manufacture and enabling to set correct pricing of goods and services depending on the existing market situations and conditions.

Effective business strategies in forecasting comprises of influencing the environment to correspond to that used for forecasts and at the same time organization identify and acknowledge the changing variables in the environment which can influence forecasts. Thus business incorporates forecasts dynamically in the strategic targets so that if the environment and the forecasts alter targets can also be changed accordingly. In this way business makes use of their operating environment to strategically connect it with forecasting and accordingly plan their functions which indeed can facilitate to improve the business performance.

Thus strategic forecasting enables to make decisions which can more correctly reveal the existing market situation. For instance if a particular cost variable goes up unexpectedly then enterprise can immediately foresee the impact on the forecast and target and accordingly take corrective measures and actions. Thus it can react by compensating for the cost change or by adjusting targets to reflect it. Strategic forecasting makes the organization operations responsive to market factors on a constant basis thus facilitating business can decide whether to assign additional resources for corrective action or to alter their strategies to reflect the new situation.

Investors utilize forecasting to establish if events affecting a business such as sales expectations will increase or decrease the price of shares in that company. Forecasting also provides an important benchmark for firms which need a long-term perspective of operations. Stock analysts use forecasting to explore how business trends such as GDP or unemployment, will change in the coming quarter or year.

Main purpose of inventory management is to preserve and maintain the goods safely. Inventory should be kept in a protected area, where it is secured from theft. Depending on the size of your business, this could mean using observation and supervision equipment, guards or alarm systems. The inventory should be handled carefully to avoid breakage to avoid any kind of financial loss for the organization.