Forecasting Method

1505 Words May 15th, 2006 7 Pages
Abstract
Companies forecast in different ways and for different reasons. For the sake of my current employer, some of the reasons to why they forecast is to ensure that there are plenty of cellular phones in stock or even to make 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 they feel that
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Casual relationship is "a situation in which one event causes another. If the event is far enough in the future, it can be used as a basis for forecasting." A good example of this would be a casual relationship between student enrollment and teachers in a university. If the enrollment of students is higher than normal than it would cause for additional teachers to be hired and vice versa. This is considered a casual relationship since additional teachers would not have been hired if enrollment was not up therefore the high enrollment causes the increased staff.
Now that I have defined each of the forecasting methods discussed within this paper, I will now compare them to each other. Of the methods discussed in this paper, Delphi has no comparison to any of the other three methods of forecasting. Delphi forecasting is used in conjunction with experts and hypotheses rather than gathering information from other sources and analyzing them. At the same time, Time series and Casual relationship forecasting has similarities because each is dependent on another aspect. Though Time series focuses on the seasonal aspects of things, casual relationship could very well be dependent on the seasons. For example, the Time series forecasting is big on farmers for planning their crops; however bad weather would cause a casual relationship between the two. This reasoning is due to the fact that the forecast

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