Production and Operation Management

1. Pamantasan ng Cabuyao
Katapatan Subdivision, Banay-banay, Cabuyao, Laguna
Graduate School and Continuing Professional Education
NERICA BARRIENTOS-MANASAN
Production and Operation Management
GS_MBA-1
LEARNING INSIGHTS: TOPIC 3
FORECASTING
Forecasting was described in the previous meeting as a systematic strategy to
analyzing and understanding current and historical data in order to understand an
organization's future. Business forecasting is regarded as a critical component in the
industry for identifying future changes and establishing present and future trends.
Forecasting is the fundamental premise employed in an organization to match supply
and demand. This strategy is used by organizations and enterprises to foresee and
predict future outcomes and events. This is also one technique of aligning a firm with
the supply and demand of the market. Forecasting also aids business owners and
managers in the implementation and development of growth strategies and
methodologies.
Forecasting can be done in a variety of time frames, including short, medium,
and long-term. These have something to do with the amount of time required to make
systematic and strategic business decisions. Short-term forecasting is utilized in
planning and mapping work schedules, including staff involvement and productivity
levels. The medium range technique is applied to production planning and cash
management. Long-term forecasting is employed in many aspects of business
development, including expansion, facility location, and even research.
Quantitative and qualitative forecasting approaches are the two categories of
forecasting methodologies. Quantitative forecasting is defined as a long-term method
concerned with measurable and historical data such as previous sales and revenue
figures, and it makes estimates based on statistical modeling, trend studies, or other
information from expert sources. In order to produce short-term predictions, qualitative
forecasting involves the interpretation of data, as well as the expertise and instincts of
business specialists.

2. Pamantasan ng Cabuyao
Katapatan Subdivision, Banay-banay, Cabuyao, Laguna
Graduate School and Continuing Professional Education
Conclusion/Recommendation:
Forecasting is a critical element in every organization since it allows for
informed business decisions and the development of data-driven initiatives. Financial
and operational decisions are based on current market conditions as well as forecasts
for the future. Past data is compiled and examined to uncover patterns, which are then
utilized to forecast future trends and changes. Forecasting enables business to be
proactive rather than reactive. To be useful, a forecast must be accurate;
consequently, any forecast must be error-free. However, due to the dynamic nature of
current conditions, it is impossible to make accurate predictions in the actual. A degree
of variance from genuine data should be included in every forecast. Forecast mistakes
should be checked during the development of periodic predictions to verify that they
are below acceptable limits. When deciding amongst a variety of possibilities, the
accuracy of forecasting is a critical issue to consider. Forecasting should be SMART
(Simple, Measurable, Accurate, Reliable, Timely).