What is a forecast?
A statement aboutfuture values of a variable, in other
words forecasts areprediction of future
Something that can be predicted in advance
Better predictions lead to informed decisions
Example of forecast
Forecasting the demand of a product before it occurs
Manufacture according to the predicted demand
Companies that does demand forecasting: Wal-Mart, JCPenney, Gap, P & G etc.
Forecasting helps managers byreducing some of the uncertainty, thereby allowing them todevelopmeaningful plans, how?
Anticipating what buyers want