A FORECAST MODEL IN OPERATIONS PLANNING

Abstract

It is definitely difficult to make a judgment about the future without knowing the past. However, it is considered foolish to rely exclusively on the past to plan for the future. This is the dilemma of someone who must make conjectures about an unknown future. It is advisable for a decision-maker to combine historical data and its interpretation with judgments based on intuition, experience, and the current situation to try to decipher future events. In a productive company, knowledge of future demand is of paramount importance, since, through it, it is possible to define production plans, order materials, determine inventories, etc., and the entire company in general would be dynamic, knowing what it expects to obtain in the future.