Engineering Economy

CHAPTER 14

Forecasting

14.1 INTRODUCTION

In a competitive business environment, the success of an organization, be it manufacturing or service sector, depends to a great extent on its ability to correctly estimate the future demand of its products or services. The organizations can accomplish the task of estimation of future demand by using forecasting methods. Forecasting helps organizations in proper planning and control of operations and other resources which in turn ensures fulfillment of customers' future demand. Several methods of forecasting have been developed to deal with forecasting problems of different nature. In this chapter, those methods of forecasting that specifically suit to production/operations situations are discussed and ...