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.
 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).