Forecasting at Ebbd
LOG 501
Forecasting at EBBD
Module 2
Jose Silva
To: Report to Danny Wilco
From: Jose Silva
Subect: Forecasting at EBBD
Problem Situation:
The management team at EBBD wanted me to look deeper into the way EEBD utilizes forecasting methods, what other techniques are out there that could be available, and how they can improve their short term forecasting on an annual, quarterly, and monthly basis. They are also interested in long-term forecasting, i.e., two or three years. Lastly, they want to know how they can generate quarterly inflation forecasts.
Assumptions:
1. In order to maintain a proper balance between company goals and customer expectations, we must assume EBBD managers are often required to provide better service with fewer resources. 2. EBBD’s approach in forecasting is not only a projection of future business but it is also a request or resources that will ensure a supply of a product. Assuming their monthly costs and operational budget reviews are productive, this process should provide desired results. 3. Assuming this environment is constant, the importance of effective forecasting is huge. When it is decided to place a determined amount of a product on a forecast, we expect both the resources and the products to be available. It is here where forecast accuracy becomes critical to ensure that expectations will be met with minimal fluctuations. 4. EBBD management often operates under conditions of risk and uncertainty and one of the most important tools to reduce risk in decision-making is forecasting. I will evaluate the level of efficiency of current forecasting method used in EBBD. 5. There is a difference between forecasting for an existing product line and for a new product. Critical evaluation will show if the proper forecasting tool is applied to each individual situation.
Evidence
Companies that are trying to
Forecasting at EBBD
Module 2
Jose Silva
To: Report to Danny Wilco
From: Jose Silva
Subect: Forecasting at EBBD
Problem Situation:
The management team at EBBD wanted me to look deeper into the way EEBD utilizes forecasting methods, what other techniques are out there that could be available, and how they can improve their short term forecasting on an annual, quarterly, and monthly basis. They are also interested in long-term forecasting, i.e., two or three years. Lastly, they want to know how they can generate quarterly inflation forecasts.
Assumptions:
1. In order to maintain a proper balance between company goals and customer expectations, we must assume EBBD managers are often required to provide better service with fewer resources. 2. EBBD’s approach in forecasting is not only a projection of future business but it is also a request or resources that will ensure a supply of a product. Assuming their monthly costs and operational budget reviews are productive, this process should provide desired results. 3. Assuming this environment is constant, the importance of effective forecasting is huge. When it is decided to place a determined amount of a product on a forecast, we expect both the resources and the products to be available. It is here where forecast accuracy becomes critical to ensure that expectations will be met with minimal fluctuations. 4. EBBD management often operates under conditions of risk and uncertainty and one of the most important tools to reduce risk in decision-making is forecasting. I will evaluate the level of efficiency of current forecasting method used in EBBD. 5. There is a difference between forecasting for an existing product line and for a new product. Critical evaluation will show if the proper forecasting tool is applied to each individual situation.
Evidence
Companies that are trying to
References: 1. Financial Accounting, Fourth Edition, Kimmel, Weygandt, Kieso, John Wiley & Sons, 2007 2. Principles of Forecasting, Norwell, Massachusets, Kluwer Academic Publishers, 2007 3. Forecasting Methods and Techniques, http://smallbusiness.chron.com/methods- techniques-sales-forecasting-4693.html 4. SalesForecasting, at http://www.tutor2u.net/business/marketing/sales