Key Learnings: Chapter 3 (Forecasting)

• Forecasts are vital inputs for the design and the operation of the productive systems because they help
managers to anticipate the future.

• Forecasting techniques can be classified as qualitative or quantitative. Qualitative techniques rely on

judgment, experience, and expertise to formulate forecasts; quantitative techniques rely on the use of
historical data or associations among variables to develop forecasts.

• All forecasts include a certain degree of inaccuracy; therefore, it is important to provide a measure of
accuracy for them.

• Qualitative techniques include consumer surveys, salesforce estimates, executive opinions, and manager and
staff opinion
• Quantitative techniques time-series data and associative techniques
• Time-series techniques rely on the examination of historical data; predictions are made by projecting past
movements of a variable into the future
Good luck with the session prep! Hope this helps.

Zehra Waheed