FORECASTING

Forecasting is the first major activity in the planning. It involves careful study of past data and present scenario. The main purpose of forecasting is to estimate the occurrence, timing, or magnitude of future .events. For example, the trend of past ten years in the demand of cars and corresponding purchasing power of the consumers may form a basis of forecasting the demand of cars during next year. Once, the reliable forecast for the demand is available, a good planning of activities is needed to meet the future demand. Forecasting thus provides the input to the planning and scheduling process.