Affirm-or-negate - essay PDF

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Ranezce Kriscean M. Gacusan BSA -1D Affirm or Negate “Never forecast what you can calculate” Forecasting is very essential to a business; it is the process of making predictions for the future based on past and present data. Determining the amount of raw materials to be used in the creation of product to supply a certain demand is challenging for every business, underestimation will cost you money and might lead to overproduction, that is why forecasting enables business managers to predict how a particular product will sell and how many should be produced, through forecasting it makes them future oriented and wiser when it comes to decision making and calculations. By means of forecasting, a business becomes more competitive and efficient since it provides the managers the knowledge and techniques that can be used in future events. No one knows what lies ahead that’s why it would be better that you are ready. The data used in forecasting should be based on facts and figures and not on personal biases of the forecaster and must be collected through systematic investigation. However, there is what we call qualitative forecasting wherein applicable if data are limited or not available . Qualitative techniques are subjective or judgmental and based on estimates and opinions (Chase, 2005). Forecasting includes calculation and projections especially on analyzing trends that is why I disagree to the saying from Dr. Joseph Orlicky, “never forecast what you can calculate”, you can’t perform forecasting adequately without calculating the data especially if it is a quantitative forecasting, you can’t just estimate and guest alone, you’ll be needing logical basis and statistical method from the past and present data to predict the future outcomes. How can you determine how many products your business should produce without calculating? And how can you calculate without forecasting? It’s like these two are inseparable. So, I therefore conclude that you can forecast what you can calculate....