Reference no: EM131746743

The use of forecasted data in management is a necessity that cannot be understated. In management, it is essential that we maximize the use of our resources in order to influence our decision making and impact effective results. Using a variety of approaches, such as short-range, medium-range, and long-range forecasts can allow an organization to be prepared for decisions in the near future as well as down the road. While it is important to understand trends, cycles, and patterns, it is also very important for management to understand that forecasts may not always be accurate. Management must remain focused on the possibility for forecast error and make efforts to minimize error. As discussed by Taylor (2016), “although some amount of forecast error is inevitable, the objective of forecasting is for the error to be as slight as possible.” Therefore, the material in this chapter is only beneficial if error is understood and minimized when possible.