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Many companies use forecasting to determine product/service demand. However, forecasting can be very inaccurate. Some companies report forecast errors as high as 30% - 40%. Your company current uses a time series analysis to predict demand.
1. Do you feel that your company would benefit from using forecasts even if they experienced forecasting errors in the 30% - 40% range?
2. Discuss some potential causes of forecast errors.
3. Provide an example of a product/service that your company could provide in which a time series analysis would be appropriate.
4. Provide an example of a product/service that your company could provide in which a time series analysis would not be appropriate.
5. How would implementing a JIT system help alleviate the need for a highly accurate forecasting system?
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