ENG ELC 220 Lecture Notes - Lecture 20: Aggregate Supply, Local Marketing Agreement, Weighted Arithmetic Mean
21 Oct 2020
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Document Summary
Forecasting forecast = an estimate of the future level of some variable; common variables that are. Forecasting is often the very first step organisations must go through when determining long-term capacity needs, yearly business plans, and shorter-term operations and supply chain activities forecasted include demand levels, supply levels and prices. Organisations use a number of different forecasting techniques, depending on the situation they face. Distinguish between overall market demand and firm-level demand both are interesting but for different reasons. Once firms have accurately forecasted this firm-level demand, they can begin to plan their business activities accordingly (2) supply forecasts. Might provide information on the number of current producers and suppliers, projected aggregate supply levels, and technological and political trends that might affect supply (3) price forecasts. Many businesses need to forecast prices for key materials and services they purchase. When commodity prices are expected to increase, a good strategy is forward buying.
