What are the steps of the forecasting process as described in the text?
What will be an ideal response?
The authors describe a six-step forecasting process.
Step 1. Update the history file and review forecast accuracy. Enter the actual demand and review forecast accuracy.
Step 2. Prepare initial forecasts using some forecasting software package and judgment. Adjust the parameters of the software to find models that fit the past demand well and yet reflect the demand manager's judgment on irregular events and information about future sales pulled from various sources and business units.
Step 3. Hold consensus meetings with the stakeholders, such as marketing, sales, supply chain planners, and finance. Arrive at consensus forecasts from all of the important players.
Step 4. Revise the forecasts using judgment, considering the inputs from the consensus meetings and collaborative sources.
Step 5. Present the forecasts to the operating committee for review and to reach a final set of forecasts.
Step 6. Finalize the forecasts based on the decisions of the operating committee and communicate them to the important stakeholders.
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