- Differentiate at least two or three key elements for each of the four primary forecasting techniques and how they apply to your chosen organization.
Telsa, inc. manufacturing techniques.
Planning and Controlling the Manufacturing Sector
“Forecasting systems offer a variety of techniques, and no one of them is best for all items and situations. The forecaster’s objective is to develop a useful forecast from the information at hand with the technique that is appropriate for the different patterns of demand. Two general types of forecasting techniques are used: judgment methods and quantitative methods. Judgment methods translate the opinions of managers, expert opinions, consumer surveys, and salesforce estimates into quantitative estimates. Quantitative methods include causal methods, time-series analysis, and trend projection with regression. Causal methods use historical data on independent variables, such as promotional campaigns, economic conditions, and competitors’ actions, to predict demand. Time-series analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand and recognizes trends and seasonal patterns. Trend projection with regression is a hybrid between a time-series technique and the causal method”