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Operation Management In Forecasting

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Management
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king saud university
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Running head: OPERATION MANAGEMENT IN FORECASTING 1
Operation Management in Forecasting
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OPERATION MANAGEMENT IN FORECASTING 2
Operation Management in Forecasting
Demand Forecast
Highline Financial Services, Ltd offers financial and accounting services to clients. The
company has recorded demand for the past two years and requires an evaluation of the following
year’s demand for services. The firm offers three different types of services that are named as A,
B, and C. These services have been recorded with their demand for four quarters in the last two
financial years. The demand forecast will be helpful as it will help the company’s management
make decisions such as planning, evaluation of financial obligations, and estimating the
resources required to cater to the clients' needs in offering the three types of services. The
demand forecasting will be attained based on the implementation of a straight line method of
forecasting. This method is effective as it determines the simple process of estimating the future
demand for the company’s services. The method is simple and easy to use and helps acquire
correct and accurate figures based on the use of an organization's historical data. For example,
the company has offered demand figures for the past two financial years, which will be used to
estimate the following year’s demand for the services provided. Using the straight line
forecasting method will require obtaining a specific growth rate to forecast the subsequent year’s
demand for services in the market industry. The optimum growth rate for the company will be
4% which will be used to calculate the overall demand that will be required and attained in year
3. Using the 4% growth rate will be effective as it will help utilize the formula of demand
forecast. For example, the procedure; previous year’s demand, multiplied by the sum of 1 plus
the growth rate (A/B/C*[1+4%]). This formula will be used for all the services and all the
quarters to obtain the projected demand for the company in the subsequent financial year.
Calculations of the Demand Forecast

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Running head: OPERATION MANAGEMENT IN FORECASTING Operation Management in Forecasting Name Institution 1 OPERATION MANAGEMENT IN FORECASTING 2 Operation Management in Forecasting Demand Forecast Highline Financial Services, Ltd offers financial and accounting services to clients. The company has recorded demand for the past two years and requires an evaluation of the following year’s demand for services. The firm offers three different types of services that are named as A, B, and C. These services have been recorded with their demand for four quarters in the last two financial years. The demand forecast will be helpful as it will help the company’s management make decisions such as planning, evaluation of financial obligations, and estimating the resources required to cater to the clients' needs in offering the three types of services. The demand forecasting will be attained based on the implementation of a straight line method of forecasting. This method is effective as it determines the simple process of estimating the future demand for the company’s services. The method is simple and easy to use and helps acquire correct and accurate figures based on the use of an organization's historical data. For example, the company has offered demand figures for the past two financial years, which will be used to estimate the following year’s demand for the services provided. Using the straight line forecasting method will require obtaining a specific growth rate to f ...
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