Inventory Essay Example | Topics and Well Written Essays - 500 words - 1

Inventory - Essay Example After a long time use of the time series forecasting method, the company should now adopt a new strategic plan, which should enable it to penetrate its market deeper. It is not safe for the company to rely on its historical data alone in the prediction of its future needs when considering demand. Therefore, the qualitative forecasting method is the best method applicable by the company. This will ensure that the company knows the likely direction to be taken by its customers in the consumption of its goods; and adjust appropriately to cater for the views of the consumers. Besides the techniques already listed in the abstract, there are other forecasting techniques available and already in operation. They are each used in line with the future need that a company requires. Therefore, before using any of these methods, consider the time of preparation, cost, and accuracy of the technique. These techniques make different assumptions in their operation (Makridakis, Wheelwright, & Hyndman, 1998). In addition to the already mentioned methods are Regression methods, which involve the extension of linear regression that is a variable, linearly relates to some other independent variables. The other method of forecasting used is the multiple equation methods, which involve some variables that are dependent interacting with each other in a number of equations. This method receives proper application in the economic models of forecasting. These techniques have their basis on human judgment in the forecasting of the planned future of a given company. Therefore, these methods are said to be subjective based on the judgments and opinions given by the experts and the consumers. These techniques apply to the decisions that are intermediate and long range. They can be used in the creation of forecasts that are short term and can supplement projections,