Deliverable 6 - Presenting a Forecasting System (Repair 1st attempt)

Presenting A Forecasting System

Operations Management

Rasmussen College

Jeff Rover

03/16/18

Impact operational forecasting on organizations

Operational forecasting is used by an organization for production strategies. An organization can use operational forecasting as a method of estimation to ascertain the future outcome of the business. For effective operational forecasting, the process required for manufacturing and distribution of products should be involved. There are aspects that should be considered while undertaking operational efficiency. They include: creation, distribution, development, and production of products (Starr, & Gupta, 2017). 

An organization receives valuable information that can be used for future decision making if it undertakes operational forecasting. It is important for an organization to know the driving forces behind production decision. Through operational forecasting, an organization will be able to know its market opportunities. This hence provides more information about the process design, capacity planning, aggregate planning, schedule and inventory management which is important for planning production. Without a proper operational forecasting, an organization can end up failing in its operations. Through operational forecasting, an organization can be able to commit its resources with an assurance of acquiring profit over a long period of time.

An organization can be able to develop new products if it undertakes operational forecasting since it will be able to identify future demand patterns. The economic condition of a country may have adverse effects on the operation of an organization. Therefore, when an organization undertakes operational forecasting, it will be able to know about the economic trends. In addition, an organization will be able to predict the new technological developments that may help in changing the operations of an organization (Jain, & Malehorn, 2005). Lastly, it will help an organization in forecasting the competition and the strategies that it can use to acquire market share.

References

Jain, C. & Malehorn, J. (2005). Practical guide to business forecasting. Flushing, N.Y: Graceway Pub. Co.

Starr, M. & Gupta, S. (2017). The Routledge companion to production and operations management. New York: Routledge.