Forecasting Methods Compare and Contrast - 1244 Words

Forecast in a simple terms is a prediction thru a statement or claim that a particular event will occur in the future. It looks like to me that almost the majority of the people, including children, once in their life time were a forecasters, as sometimes in their past they?ve tried to predict any future event. This act of making such prediction is therefore, called forecasting. Forecasts are never finished, they are needed continuously and as the time passes, their accuracy and their impact on actual performance are meas So it looks like that forecast in itself, is not too complicated, it becomes complicated once the word ?good? is attached to it. Thus, the forecast has to be well thought and planned so it can be called good or adequate†¦show more content†¦Delta airline is one clear example as it is the latest one to make use of the chapter 11. The remaining of this paper will be talking about the different forecasting methods used by the airline industry to make future pr ediction of passenger demand. The exactness of forecasts is very critical to the revenue management system as lousy prediction of demand can lead to an incorrect decision-making, which in turn leads to a miserable revenue performance. So the airline industry, more than any other industry, needs an accurate forecasting not only because of the September 11 occurrence, but also due to a very high price of crude oil, which tends to increase the price of kerosene highly used by the industry. One study identified as the Improved Forecast Accuracy in Airline Revenue Management (2001, Richard Zeni) shows that airlines divide passengers into two large categories based on their sensitivity to price and travel needs. These included business passengers and leisure passengers. This study has further shown that business travelers have a tendency to make their arrangements close to their departure date staying at their destination for only a short time. However, they did not show much flexibility on their plans at all, but they were willingly to pay more money for their tickets. On the other hand, exactly the opposite happened with leisure travelers. They usually booked their flights well ahead of their travel date; stayed more timeShow MoreRelatedForecasting Method1505 Words   |  7 Pagesmake sure that the company has enough numbers to assign to customers when they purchase wireless service from us. The following paper will compare and contrast various forecasting methods while also elaborating on the method that my current employer use for forecasting sales and mobile identification number (MDN) requirements. Forecasting Assignment Forecasting is the ability to plan ahead for future expectations of what the future may hold. For example, business forecast every year for what theyRead MoreForecasting Methods for Companies Essay1442 Words   |  6 Pagesto assign to customers when they purchase wireless service from us. The following paper will compare and contrast various forecasting methods while also elaborating on the method that my current employer use for forecasting sales and mobile identification number (MDN) requirements. Forecasting Assignment Forecasting is the ability to plan ahead for future expectations of what the future may hold. For exampleRead MoreEssay about Business Forecast1444 Words   |  6 PagesBusiness Forecast This Paper examines and compares various forecasting techniques used for qualitative and quantitative business forecasting and their use in Firstlogic Inc., to forecast the demand under conditions of uncertainty. Time series and Delphi forecasting methods are considered for this research to evaluate their ability to make effective decisions regarding the future. Business Forecasting Business forecasting is the process of studying historical performance for the purpose ofRead MoreComparison and Contrast of Forecast Methods1585 Words   |  7 PagesComparison and Contrast of Forecast Methods MGT 554 Operations Management University of Phoenix Professor Leonard Enger May 1, 2006 TABLE OF CONTENT Cover PageÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â….1 Table of ContentsÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…...2 Seasonal ForecastingÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..3 Delphi MethodÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…4 Technological MethodÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…5 Time-series forecastingÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…...6 Company Forecasting MethodsÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..7 ConclusionÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..8 ReferencesÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Read MoreOperation Managenent1504 Words   |  7 Pagesis important. Discuss and compare organization strategy and operations strategy, and explain why it is important to link the two. 5. Describe and give examples of time-based strategies. 6. Define the term productivity and explain why it is important to organizations and to countries. 7. Provide some of the reasons for poor productivity and some ways of improving it. Chapter 3 - Forecasting: 1. List the elements of a good forecast. 2. Outline the steps in the forecasting process. 3. Evaluate at leastRead MoreBusiness Forecast1469 Words   |  6 PagesAbstract This Paper examines and compares various forecasting techniques used for qualitative and quantitative business forecasting and their use in Firstlogic Inc., to forecast the demand under conditions of uncertainty. Time series and Delphi forecasting methods are considered for this research to evaluate their ability to make effective decisions regarding the future. Business Forecasting Business forecasting is the process of studying historical performance for the purpose of using the knowledgeRead MoreCase Study : Nissan Motor Company Ltd1401 Words   |  6 Pagesuses operations management functions to provide products and generate value for its customers and achieve a competitive advantage, and will compare and contrast service operations and manufacturing operations. This paper will also compare and contrast the project management techniques of PERT and CPM at Nissan, explain the steps used to develop a forecasting system, and list the major categories of supply chain risk. Operations management is the set of activities that creates value in the formRead MoreForecasting Paper1450 Words   |  6 PagesWithin each of these types are multiple methods and models. Qualitative forecasts are based upon subjective data. Quantitative forecasts are derived from objective data. Both methods are not suitable for all situations and circumstances. Each has inherent strengths and weaknesses. The forecaster must understand the strengths and shortcomings of each method and choose appropriately. One example of forecasting is the United States Marine Corps use of forecasting techniques, both qualitative and quantitativeRead MoreEssay on Bsop 434 Final Exam Answers743 Words   |  3 Pagesmanaged inventory (VMI) benefits include: Question 9. 9. (TCO 8) International freight forwarders can provide a number of functions. Which is not one of them? Question 10. 10. (TCO 8) What is used in areas where dock workers cannot read but need a method to keep documents and shipments together? Question 11. 11. (TCO 7) Which of the following statements is false? Question 12. 12. (TCO 7) The raw materials, component parts, and supplies bought from outside organizations to support a company’s operationsRead MoreForecasting Methods1713 Words   |  7 Pagesunderstand the nature of demand and competition in order to develop realistic business plans, determine a strategic vision for the organization, and determine technology and infrastructure needs. To address these challenges, forecasting is used. According to Makridakis (1989), forecasting future events can be characterized as the search for answers to one or more of the following questions: „X What new economic, technical, or sociological forces is the organization likely to face in both the near and long