From the course: Supply Chain and Operations Careers: Certification Tips and Tricks (2019)

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Basic forecasting terminology

Basic forecasting terminology

From the course: Supply Chain and Operations Careers: Certification Tips and Tricks (2019)

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Basic forecasting terminology

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- Many of the decisions we make in a supply chain are based on what we expect will happen in the future. In this video, we'll look at some of the key forecasting concepts that are important for all supply chain professionals. First, there are two kinds of forecasts, quantitative and qualitative. Quantitative forecasts are based on historical data and statistics. For example, you might look at how much you've sold in the past and use that to make a forecast of future sales. Qualitative forecasts are based on judgment. For example, you might need to predict the sales for a brand new product where you have no sales history. Or you may know about some upcoming change in taxes or regulations that could change the demand for your product. Sometimes, you can create a forecast just by looking at a trend. Let's say that your sales have grown by 10% every year for the last five years. How much would you expect to sell next year?…

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