CEBU TECHNOLOGICAL UNIVERSITY

GRADUATE SCHOOL
CEBU CITY CAMPUS

FORECASTING
Analiza B. Calles -
TM- 713
Material REsource Management
 Definition of Forecasting

Advantages of Forecasting

Importance of Forecasting

Differnce of Forecasting, Planning , and Budgeting

Topics Areas of Forecasting

Features of Forecasting

Forecasting Methods

Forecasting Process

Sources of Data for Forecasting

Forecasting refers to the practice of predicting what
will happen in the future by taking into
consideration events in the past and
present.

it is a decision-making tool that helps

businesses cope with the impact of the
future’s uncertainty

it is a decision-making tool that helps

businesses cope with the impact of
the future’s uncertainty by examining
historical data and trends
 Sources of Data for Forecasting

P Primary Sources
S
The forecaster himself does the
collection, and may do so
through things such as
interviews, questionnaires, and
focus groups.
O
Secoondary Sources
An example of this type of
information might be industry
reports. As this information has
already been compiled and
analyzed, it makes the process
quicker.
The quantitative
forecasting technique is
defined as the process of
conducting forecasting on
the basis of numerical
data derived from the
company’s history
(Fleischmann, et al., 2012).
There are mainly two
types of forecasting
techniques; time series
model and associative
model.
Qualitative forecasting
techniques help
organizations to reduce
ambiguity in data, predict
changes in sales patterns,
and customer behaviors.
It gives the team required
flexibility when using soft
data.
Types of Qualitative Forecasting

https://pangeatech.net/qualitative-forecasting-techniques-an-overview/ bit of body text

Delphi Technique:
The main objective of the Delphi technique is to construct consensus forecasts from a group in a structured manner. The technique involves a repeated
cycle of questionnaires presented to a panel of select experts. The independent answers provided by the expert team are then forwarded to the
facilitator to analyze and summarize the opinions.
Market Research
Market research is a popular qualitative forecasting method used in business. It forecasts future
demand through consumer surveys and questionnaires. Businesses apply this technique to gain
valuable insights from consumers when, for example, introducing a new product into the
market.
Panel consensus method
is a qualitative forecasting technique that brings
all the internal experts of an organization together
for an open discussion about a product or service.
Anyone may speak up, and the meeting will end
when a consensus is reached. The accuracy of the
forecast is ex post facto verified against actual
sales data.

This method differs from Delphi or market

research in involving only the experts
internal to the organization.
Visionary forecasting

In contrast to using group think, visionary forecasting is usually based on the individual opinion or
judgement of an experienced and respected individual in the field. In this method, a set of future
scenarios is usually determined by the “visionary” based on past events. It is therefore based on
subjective guesswork and somewhat non-scientific.
God Bless and Happy Sunday
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