Project #38848 - operations management discussion

1 post & 2 responses


Forecasting is an uncertain science since it calls for predictions but 
current theoretical and mathematical models (quantitative and 
qualitative) make it possible for organizations to predict with an 
acceptable margin of error. Think about it this way; without forecasting 
organizations would always be responding rather than acting.

Select one industry from the list below: Bank, restaurant, health 
clinic/hospital, airline, or university.
What specific variables would be needed by that organization in order to 
forecast? Be sure you explain why you selected each variable and why it 
is important to forecasting.
Which variables are used for short-range forecasting, long-range 
forecasting, or for both. Make sure you support your selections.

Respond to this post-
The benefits of forecasting demand in any business as stated by Edmunds 

Efficient supply chain scheduling

Better labor management

Adequate cash flow

More accurate budgeting

Russell & Taylor  ( 2011) state that in the regression method variables 
are used to forecast demand by forming a mathematical relation between 
the variables. Prenhall describes short range forecasting are used for 
daily weekly or monthly sales up to two years forecast.  For a 
restaurant industry those variables would be forecasting inventory 
levels especially for perishable items, guest or customer’s traffic, 
order quantities of food, and seasonality of produce. Moreover short 
range variables might include promotions and activities taking place in 
the restaurant area or even thaw time of food.

As for long-range forecast it usually used for a period longer than two 
years and it is basically used for strategic planning such as historical 
consumption patterns of food, menus, designing the supply chain, how the 
restaurant will enter a new market or expand, franchising, technological 
advances, and changing markets.

Respond to this post-The industry I have chosen is a university for the forecasting 
the future students and needs. Universities, just like any other 
business need to make accurate as possible forecast for future. This can 
be their amount of future students, what types of students, how many 
faculty members needed, how many buildings will be needed and how much 
to budget for all of these items. The school is dependent upon many 
factors, including in-state population of graduating students, in-state 
tuition plans, the expected amount of students likely to attend school, 
what degrees are in demand compared to what the degrees the school 
focuses on and what type of aid the school gets from government 
agencies. The school has the ability to be proactive by concentrating on 
their own performance standards, having the facilities needed for 
desired degrees, offering a superior faculty and working with local 
companies and matching degrees with their needs. Being proactive and 
enhancing the school is a long-term goal because it can take more than 2 
years to complete such projects. Hiring school recruiters today to urge 
students to their school is a good short-term way to help with current 

There are so many factors in forecasting the future student size of a 
school and it is nearly impossible. Attendance can depend upon so many 
different factors, but there has to be an educated guess based on 
current attendance, trends, comparing to the competition and even the 
performance of the school's athletic teams. All of these factors can ebb 
and flow so quickly that reaching a certain capacity that can easily be 
maxed-out might be a solution. More students wanting to attend than the 
school can take, giving the school the ability to have a more steady 
forecast of the future.

Subject Business
Due By (Pacific Time) 08/31/2014 08:00 pm
Report DMCA

Chat Now!

out of 1971 reviews

Chat Now!

out of 766 reviews

Chat Now!

out of 1164 reviews

Chat Now!

out of 721 reviews

Chat Now!

out of 1600 reviews

Chat Now!

out of 770 reviews

Chat Now!

out of 766 reviews

Chat Now!

out of 680 reviews
All Rights Reserved. Copyright by - Copyright Policy