Mgmt forecasting essay

The Importance of Forecasting in the Operations of Modern Management ! Forecasting plays a pivotal role in the operations of modern management. It is an important and necessary aid to planning and planning is the backbone of effective operations.

A forecast should be reviewed regularly by the management in order not to be static. The reason for this is to enable the inclusion of information on the future trends, external or internal environment to give a more accurate forecast. Having an accurate forecast is very important task in supply chain management.

Some forecasts, using scientific methods or instrumentations can be fairly accurately made. For example, short-range weather forecasting, forecasting the paths of meteorites and comets or solar and lunar eclipses are quite accurate. However, accuracy becomes less dependable as we extend forecasting farther into the future.

An aggressive organization keeps up to-date with new technological development and readily adopts new methods to improve performance. It is equally necessary to predict as to what strategies your competitors would be employing to acquire gains in the market share, perhaps at the cost of your market share.