Description
Critical Thinking:
Read through the Case Study entitled “Highline Financial Services, Inc.” in Chapter 3 of your textbook. It covers the role of forecasting in operations management. Examine the demand that this company has experienced for the three categories of service it offers over the preceding two years. Assuming nothing changes in terms of advertising or promotion, and competition also does not change, predict the demand for the services the company offers for the next four quarters. (Note that there is not enough data to develop seasonal relatives.)
You should be able to make reasonably good, approximate, intuitive estimates of demand. What general observations can you make regarding demand? Should Freddie have any concerns? Explain your answers in a 4-6 page paper, not including the cover and references pages. Use at least one outside reference to support your recommendations.
Reference must be 2011 - 2016
Well Writing , APA style
i'll include the case .
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Explanation & Answer
Attached.
OUTLINE
1. Forecasting definition
2. Importance of forecasting
3. Law of demand
4. Prediction of demand
5. Conclusion
6. Reference
MANAGEMENT
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Management
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Instructor
Institutional affiliation
Date
MANAGEMENT
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Forecasting definition
Forecasting refers to the ability or the process of predicting future occurrence of an event.
In the provided case study, it entails prediction of values for quantities demanded for the three
services, A, B and C, in the next four quarters (Granger, 2014).
This generally would help an organization or a firm to plan for its future operations through
efficient allocation of resources and production factors. It again helps in uncertainities
minimization that might occur in the future. Lastly, it consolidates the quantities supplied and
quantities demanded which helps in knowing how much to supply for the available demand.
Importance of forecasting
Forecasting ranges its significance from the economic, social and even to technological
perspective. This explains the reason as to why it is necessary to predict the future values of
quantity demanded in the next or coming four quarters (Heizer, 2016). The importance are briefly
explained as follows;
a) Economic development
Forecasting helps in speculating future values of gross domestic product and...