Define QUANTITATIVE FORECASTING MODELS
Define QUANTITATIVE
Forecasting is the process of identifying the demand accurately for future production planning and decision-making purposes. It is an important area of manufacturing organizations as forecasting plays a vital role in the efficiency of the organization.
Quantitative method of forecasting uses numerical and prior effects to predict the possible future. These are mathematical models and are objective. It is the forecasting that is done with data without any complications. There are two types of quantitative forecasting methods. They are:
Time-series models:
These are forecasting models that analyses the past data patterns and forecast the demand for the future based on some underlying pattern in the data. The various time-series models are:
- Simple and weighted moving average.
- Seasonal forecasting.
- Trend-equation forecasting.
- Simple and exponential smoothing.
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