Summary CMA Part 1 – Sec. B FORECASTING TECHNIQUES

CMA Part 1 – Sec. B


FORECASTING TECHNIQUES




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, Forecasting Introduction

 An essential aspect of managing any organization is
planning for the future.
 Organizations employ forecasting techniques to
determine future inventory, costs, capacities, and interest
rate changes.
 There are two basic approaches to forecasting:
 Qualitative
 Quantitative


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, Qualitative Approaches to Forecasting

 Delphi Approach
 A panel of experts, each of whom is physically separated from
the others and is anonymous, is asked to respond to a
sequential series of questionnaires.
 After each questionnaire, the responses are tabulated and the
information and opinions of the entire group are made known to
each of the other panel members so that they may revise their
previous forecast response.
 The process continues until some degree of consensus is
achieved.
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