In Practice Operations, the forecast is presented in terms of identifying the "hot" and "popular" products. What other information can be included in a forecast? 

 

Forecasting helps us to know the future. It also helps us to compare, to estimate and to analyze the data to arrive at the estimated results.

It leads to regular investigation of different aspects of production and management within and outside the organization. Forecasting prepares a ground to work together and brings better co-ordination, co-operation and control in the organization.

Under forecasting, future prospects, stability and the discrepancies are properly weighed and studied. This helps the management to remove any hindrances that may come in the way of management.

Thus company results are compared with the estimated ones, the other element which is quite conspicuous with forecasting. Whenever large difference is found, further investigation is undertaken to find out the reasons for such discrepancy.

Forecasting, therefore, helps to know the expected profits or losses and just by going through certain reports and records of the company, enables the forecaster to take necessary decisions. Decision-making becomes better and easier when forecasting is undertaken on scientific basis.