Group items tagged

Advantages of Forecasting An organization uses a variety of forecasting methods to assess possible outcomes for the company. The methods used by an individual organization will depend on the data available and the industry in which the organization operates. The primary advantage of forecasting is that it provides the business with valuable information that the business can use to make decisions about the future of the organization. In many cases forecasting uses qualitative data that depends on the judgment of experts. Disadvantages of Forecasting It is not possible to accurately forecast the future. Because of the qualitative nature of forecasting, a business can come up with different scenarios depending upon the interpretation of the data. For this reason, organizations should never rely 100 percent on any forecasting method. However, an organization can effectively use forecasting with other tools of analysis to give the organization the best possible information about the future. Making a decision on a bad forecast can result in financial ruin for the organization, so an organization should never base decisions solely on a forecast.

Inventory forecasting utilizes simple inventory planning and control techniques.

Forecasting helps determine the optimal quantities to keep in stock.

If a company holds too little inventory, it runs the risk of running out of stock.

example

of a Consumer-to-Consumer application is Ebay

The most famous and successful

eBusiness is much more than eCommerce – buying and selling on-line. Companies are increasingly using Information and Communication Technologies (ICTs) to link together their business processes and systems:

eBusiness therefore allows new forms of partnership, and improves both the way companies work and the products and services they offer.

National legal systems across Europe therefore have to take these opportunities into account, with a European approach required on issues as diverse as taxation, copyright, consumer protection and privacy - see Policies, below.