Note. It is not based on mere guessing or prediction but is backed up by evidence and past trends. Summary. Forecasting refers to the practice of predicting what will happen in the future by taking into consideration events in the past and present. Critical business assumptions like turnover, profit margins, cash flow, capital expenditure, risk assessment and mitigation plans, capacity planning, etc. It is estimating future event (variable), by casting forward past data. Aggregate Planning by definition is concerned with determining the quantity and scheduling of production for the mid-term future. To businesses, Demand Forecasting provides an estimate of the amount of goods and services that its customers will purchase in the foreseeable future. Forecast category options consists of Won and Lost opportunity statuses. Forecasting The process of making predictions about future general economic and market conditions as a basis for decision-making by government and business. It's possible to set something up through a spreadsheet, though an integrated tool can better execute this. Forecast Planning Manager manages the organization's forecast planning function using inventory levels, production speed, and product demand to estimate output. Here, Terry Elliott provides a detailed explanation of how to do forecasting using three common sales forecasting methods If an opportunity is set as Won or Lost, the forecast category automatically changes status through the Opportunity Forecast Category Mapping Process out-of-the-box workflow. Planning, budgeting and forecasting are three important pillars of Deloitte’s Integrated Performance Management framework. Gathers and evaluates data to develop solutions for increasing production. Various forecasting methods can be used to estimate future economic conditions, varying greatly in terms of their subjectivity, sophistication, data requirements and cost: Definition: Demand forecasting refers to a scientific and creative approach for anticipating the demand of a particular commodity in the market based on past behaviour, experience, data and pattern of related events. Basically, it is a decision-making tool that helps businesses cope with the impact of the future’s uncertainty by examining historical data and trends. The primary goal of forecasting is to identify the full range of possibilities facing a company, society, or the world at large. The timing on an aggregate plan runs normally from 3 to 18 months. Forecasting, a company's ability to try to figure out what is coming along in the future by using information available today, is an important part of looking to the future for any company. Therefore, the plan is a by-product of the longer term strategic plan. But to get even more value from driver-based forecasting you need an integrated platform where you can see the consensus forecast across the company, measure performance against drivers, and run a distributive process. Past data are systematically combined in predetermined way to obtain the estimate. The refrain is common: we need to adhere to our targeted service levels… but at the same time, we also need to keep staffing costs down. For comments: ehabmes@yahoo.com Chapter 3: Forecasting Definition: Forecasting is a statement about the future. Whether in a contact centre or bank branch environment, workforce managers everywhere face the constant challenge of balancing the priorities of service … To view the Opportunity Forecast Category Mapping Process workflow, go to Settings > Process Center > Processes and select All Processes view. 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