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Criteria in Demand Forecasting - B.E (C S / IT), DR. K.BARANIDHARAN, SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI
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Prepared by :Dr. K. BARANIDHARANPROF.MBASRI SAIRAM INSTITUTE OF TECHNOLOGYCHENNAI
ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTINGSri Sairam Institute of Technology2Engineering Economics& Financial AccountingEe&fa
35 August 2014
Criteria in good forecasting
Criteria for good forecasting. Joel Dean lays down the following criteria of good forecasting method:-Accuracy :- forecast must be accurate as far as possible. Its accuracy must be judged by examining the past forecast with present situation.Plausibility :- it implies managements understanding of method used for forecasting. It is essential for a correct interpretation of the results.Simplicity :- a simpler method is always more comprehensive than a complicated one. Economy :- it should yield quick results. A time consuming method may delay the decision making process.Quickness :- it should yield quick results. A time consuming method may delay the decision making process.Flexibility : - not only the forecast is to be maintained up to date there should be possibility of changes to be incorporated in the relationships entailed in forecast procedure, time to time.