Question

Forecasts drive many Operations Management decisions, create a list of business decisions that require some sort of forecast. In your opinion, which of the Decision Makings Tools presented in Module A is the most useful? Please state your reasons.

**Please state sources.Thank you**

Answer 1

Ans - .Forecast is a process of predicting future events of a business and by forecasting they can make healthy decisions which would be beneficial for business . Forecasting would be very beneficial for a business or sometimes it would not be , because it is totally based on assumptions .

There are many areas in business where forecasting is made.

Sales - In sales part forecasting is done to achieve set objectives. Like 'it shows level of sales expected in next 2 months or 4 months .

In sales forecasting managers forcasts the sales by previous results too . So ultimately forecasting is also depend upon the previous results .

Let me show you next area in which forecasting is done.

Market change - There are various changes that occurs in market due to competition .

So here forecasting is very much essential part to get know about the market behaviour , customer's intension , there demand .

Prediction are made by realising market change which directly affects many operations of business like sales , production etc .

Availability of Resources - Business should also need to aware about the requirement and use of resources . How much to use on needed areas and how much business should required to meet its future objectives .

Conclusion -

These were some points by which we can understand that evven in small areas of business forecasting is very much essential.

But if forecasting is effective it will definitely shows its healthy on business .