Time-Series Forecasting: Essential is the use of measurable historical data to establish patterns /

trends, to make present decision for the future, that assumes there will be continuity, i.e. it
proects the past to the future.
!. "edium-range forecast usually runs within # months to # years period$ it informs
sales, production and budget plans that support management decisions concerning
products, plants and processes. "edium- range forecasts are wide reaching and can
be used for$ %naly&ing operating plans, 'ash budgeting and planning production.
(. )emand forecasting is key to any supplier, manufacturer, or retailer, it lends to
better management of the ripple effects of change o*er time, it regulates +uantities
purchased and produced .,n the conte-t of dependent demand which refers to the
demand for products that are part of the whole - the .subassemblies/ that ha*e to be
met. For e-ample, the parts and materials that go into the production of a motorbike
are e-amples of dependent demand. The finished bike is not part of anything its
demand is independent. There is a correlation ship that spans the basic operations
process, mo*ing from the suppliers0 raw materials to finished goods or ser*ice to
end users.
Figure ! Shows
links of
dependent
demand products and the interdependence in the %pparel ,ndustry
Figure ! Source: '(' en )esign
1eference
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"as-"achuca, "., Sain&,"., : "artine&-'osta, '. = (6!D>. % re*iew of forecasting models for
new products.,ntangibles 'apital, !6=!>,!-!C. 1etrie*ed
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