Week 5 - How to apply forecasting and demand models

Week 5 - Apply: Operations Plan

This assignment is intended to help you learn how to apply forecasting and demand models as part of a business operations plan.

Choose 2 quantitative elements that you would like to research in relation to the organization that you selected for your business plan. These elements may be related to products, services, target market, consumer preferences, competition, personnel, resources, supply chain, financing, advertising, or other areas of interest. However, at least one of these elements should be related to a product or service that your organization is planning to offer.

Develop forecasts by implementing the following approach:

1. Collect data, including old demand forecast (subjective data) and the actual demand outcomes.
2. Establish the forecasting method (from readings). Decide on the balance between subjective and objective data and look for trends and seasonality.
3. Forecast future demand using a forecasting method.
4. Make decisions based on step 3.
5. Measure the forecast error where applicable. Look for biases and improve the process.

Write a 350- to 525-word paper evaluating the findings from two forecast you completed using two different forecasting methods, and explain the impact of these findings on operational decision making. Insert charts and supporting data from Excel and other tools in your paper.