Silva, Nohren S.

BSA 1E

 Outline the steps in the forecasting process.

Here are the steps in forecasting process:
1. Determine the purpose of the forecast
a. When will it be used?
b. How can we be easily achieve the goals?
2. Establish a time horizon
a. Whether for short or long-term.
3. Obtain, clean, and analyze appropriate data.
4. Select a forecasting technique.
5. Make the forecast.
6. Monitor the errors.

 Based on forecasts, there are possibilities of errors in your organization.

What would be your approach to these differences in forecast. How would
you solve the actual output to your prediction? What solutions are you
going to do?
Forecasting is quite hard because sometimes the forecast could be a basis of what
the entity will going to do or make decision about it. Undeniably, forecasts are different
because the world is changing so is the trends, conditions, and others. And the possible
approach I’m going to make is to lay questions to myself or to the other forecaster so
that we could brainstorm about the several differences of forecasts that we have
gathered. Such questions like “Does this forecast benefit to the future?” “What is the
purpose of these forecasts and how will it be used?” “Can these forecast affect the
actual and to the future.” May be with these questions we could construct solution to our
main problem.
On the other hand, if the prediction is higher than the actual output, the solution I’m
going to do is test its reliability by analyzing the measures that might be used in the
future. Because prediction is a statement that is used in future circumstances of an
organization. But what if the predictions is higher? Then I’m going to consider or based
on the executive opinions, consumer surveys opinions of the sales staff and opinions of
experts. By the help of these three opinions from different areas we may be able to
resolve the error nor the problem in the forecast like when the prediction is higher than
the actual.
 Why is Sales Force opinions important in creating forecasts?
Sales Force opinions are important in creating forecasts because they are
aware of what will going to happen in the future plus they have a direct contact with
the customers that leads on providing forecasts that could be useful in future
planning. Sales force opinions can be a tool of an entity to keep ahead with the fast
changing of business environment. That’s why this method is used for the business
to take advantage to the intimate knowledge of customer’s need and market
conditions. However there’s still limitation to this method one is that staff couldn’t be
able to spot what the customers wanted to do and what they actually will do.