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FORECASTING CALCULATIONS

Forecasting is an important aspect of research and practice of industrial engineering. It

provides information needed to make good decisions.

Is defined as

Intrinsic forecasting

Extrinsic

forecasting

Have two basic types of forecasting

Intrinsic forecasting is based on the assumption that historical data can

adequately describe the problem scenario to be forecasted.

Extrinsic forecasting looks outward to external factors and assumes that internal forecasts

can be correlated to external factors.

Includes some steps

• Collecting historical data

• Developing a quantitative forecasting model based on the data collected

• Generating forecasts recursively for the future

• Revising the forecasts as new data elements become available.