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FORECASTING

What is it?

Forecasting is an

important aspect of research and practice of industrial engineering. It

provides information needed to make good decisions. Some of the basic

techniques for forecasting include regression analysis, time-series analysis,

computer simulation, and neural networks

Be divided in

Intrinsic forecasting

Extrinsic forecasting

This is a based on the assumption that historical data

can adequately describe the problem scenario to be forecasted.

Involves the following 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.

Looks outward to external factors and assumes that

internal forecasts can be correlated to external factors