Quantitative Analysis for Management, 13/e

5.1 Types of Forecasting Models

Figure 5.1 lists some of the more common forecasting models, and these are categorized by the type of model. The first category involves qualitative models, while the others are quantitative in nature and use mathematical models to develop better forecasts.

Qualitative Models

Qualitative models are forecasting techniques based on judgmental or subjective factors. When a totally new product such as the iPad is introduced, forecasting demand is very difficult due to the lack of any historical sales data on that particular product or on similar products. The company must rely on expert opinion, individual experiences and judgment, and other subjective factors.

Figure 5.1 Forecasting Models

Figure 5.1 Full Alternative ...