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forecasting technique

by | Mar 26

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The forecasting technique used in a company always provides inaccurate forecast. The operations manager is frustrated with the model and presents the following argument to the top management:  “Forecasting is always wrong”. In addition, qualitative forecasts such as expert opinions, decision makers intuition are difficult to measure and significantly deviate from the real world. Our quantitative forecasts are no where nearer to the actual values for the past five years. why is our company have to forecast? Why not get away with forecasting as a whole?

Explain what would have gone wrong in the company. In addition, present your opinion supporting or against the managers argument (in 400 words).

  

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