1. Chapter 1 Forecasting for Management Decisions
Business Forecasting
Chapter 1
Forecasting for Management Decisions

2. Chapter Topics Introduction Importance of Forecasting
Financial and Strategic Importance of Forecasting
The Commonality of Forecasting

3. Importance of Business Forecasting
Allows organizations to improve profits
Essential in eliminating waste such as:
Inventory shortages
Missed due dates
Plant shut-downs
Lost sales
Lost customers
Expensive expediting
Missed strategic opportunities.

4. Financial and Strategic Importance
Better strategic information
Better marketing information
Better financial information
Better operating information
Increased customer service
Better allocation of resources
(Continued)

5. Financial and Strategic Importance
Increased manufacturing and operating efficiency
Higher productivity
Stability in planning
Reduced finished goods inventory
Elimination of waste
Increased profitability
Increased return on investment.

6. The Commonality of Forecasting
All organizations wish for excellence in management (whether manufacturing or a hospital).
Demand for products, labor, materials, and other resources must be estimated using either formal or informal forecasting methods.

7. Business Forecasting The Art and Science of Forecasting
The Forecasting Process

8. Business Forecasting Process

9. Chapter Summary Importance of Business Forecasting
As a Strategic Tool
Planning and Control Tool
Various Application of Forecasting in Business
The Art and Science of Forecasting
The Process of Forecasting