Description
Operations Forecasting
Purpose of Assignment
The purpose of this assignment is for students to learn how to apply Operations Forecasting.
Assignment Steps
Resources: Microsoft® Excel®
Select a business operations dataset from the internet or other sources which can be used for forecasting in the University Library.
Develop a minimum of three quantitative forecasts using Microsoft® Excel®.
Compare and contrast each quantitative forecast you develop.
Choose the one forecast you determine would be the best for the firm and be prepared to explain why you chose this.
Evaluate the impact this forecast would have on the firm from a financial metrics standpoint.
Develop a 700-word report in which you describe your forecasting project including details on all the assignment steps.
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Explanation & Answer
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Running head: OPERATIONAL FORECASTING
Operational forecasting
Name
Institution
Date
OPERATIONAL FORECASTING
Operational forecasting involves approximation or prediction of future positions in
business operations such as expenditures, sales, and profits. Forecasting tools have progressed to
be priceless tools used in business planning and predictions as businesses and people are able to
antedate future economic inclinations from a data-driven standing point. Operational forecasts,
therefore, aid business organizations and people in adapting to changing business environment.
Forecasting methods can either be qualitative or quantitative depending on the situations to be
analyzed. Qualitative methods are biased in nature in that they are based on specialist’s
judgments, intuition, opinions, personal experiences or emotions. Conversely, quantitative
methods are objective in nature as they entail analyzing data by use of mathematical models
(Makridakis, Wheelwright, & Hyndman, 2008). This paper concentrates on the quantitative
forecasting methods in the business operation of Starbucks-US Company.
Quantitative methods eliminate human element out of analysis and in its place make use
of numerical proofs and figures as well as past observations to forecast future trends. The
forecasting methods include; simple regression analysis, simple moving average, polynomial
regression analysis among others.
Comparing the quantitative forecast
In comparing the three quantitative forecasting techniques, we consider the operation data
set for Starbucks-US Company which includes the average weekly customer-mobile transactions
in the four weeks of 2013, 2014 and 2015 month of March....