Week 4 Post 3 Review Minimum of 150 words

Week 4 Post 3 Review Minimum of 150 words

Pedro

1. How does forecasting relate to planning?

The website mention “Forecasting is concerned with what the future will look like, while planning is concerned with what it should look like.” (Forprint, 2015, June). Planning and forecasting are related because they form part of a project in a company. At the beginning of the project management will designate teams to elaborate planning process which will produce the forecast. Many companies will adapt their planning taking shortcuts, change them, or implement alternative planning to accomplish forecast with acceptable outcomes. Perhaps, companies barely will change the forecast.

2 I know the model's forecast is wrong. Should I adjust it?

It is essential that management adjust the forecast if any significant event that will affect the forecast outcome, or crucial data not available at the beginning of the project. Paul Goodwin mentions “Should apply them only when they have important information about events that were not available to the statistical forecast.” (Goodwin, 2005, June). Nevertheless, managers will implement five years forecast, and some managers depending on the nature of the business will perform annual forecast with quarterly evaluations monitoring the project planning and adapt or change a possible wrong forecast outcome.

W/C: 194

References

Forprint. (2015, June). FAQ. Retrieved October 17, 2017, from http://www.forecastingprinciples.com/index.php/faq

Goodwin, P. (2005, June). How to integrate judgment with a statistical forecast. Retrieved October 17, 2017, from http://www.forecastingprinciples.com/paperpdf/goodwin2005.pdf

Levine, D. M., Szabat, K. A., & Stephan, D. (2017). Statistics for managers using Microsoft Excel (8th ed.). Boston: Pearson.