Forecasting Methods for Companies Essay

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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…show more content…
Prior to doing so, I will first define each forecasting method in order to give the reader a better understanding of each. The first method that I will define is Delphi. The Delphi method for forecasting can be found under the Qualitative type of forecasting since the utilization of this method focuses on judgments and are based on estimate and opinions."The Delphi method is a systematic interactive forecasting method based on independent inputs of selected experts." (Wales, 2006) This method's name comes from the Oracle of Delphi and was introduced during 1950 to 1960's by Olaf Hemer and Norman Dalkey. This approach is formed by gathering various questions that are formed as hypotheses and posed to a group of experts to answer each and state when he or she believes the hypotheses will be fulfilled. "A time series is a sequence of observations of a periodic random variable. Time series are important for operations research because they are often the drivers of decision models." (Jensen, 2004) Belief is that the Time series analysis can construct from previous history in order to predict the future. This forecasting method is primarily used for making decisions in the future such as ordering supplies or employment. Additional examples of tasks that may require this type of forecasting would be an inventory control system, course scheduling

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