ABSTRACT
Forecasting is an important aspect of research and practice of industrial engineering. It provides information needed to make good decisions. Some of the basic techniques for forecasting include regression analysis, time-series analysis, computer simulation, and neural networks. There are two basic types of forecasting: intrinsic forecasting and extrinsic forecasting. Intrinsic forecasting is based on the assumption that historical data can adequately describe the problem scenario to be forecasted. With intrinsic forecasting, forecasting models based on historical data use extrapolation to generate estimates for the future. Intrinsic forecasting involves the following steps:
• Collecting historical data • Developing a quantitative forecasting model based on the data collected • Generating forecasts recursively for the future • Revising the forecasts as new data elements become available.
