ABSTRACT
This chapter presents basic techniques of forecasting that are suitable for application to industrial projects. Forecasting can be used for project cost and time estimation purposes. Forecasting is an important aspect of project planning and control, as it provides the information needed to make good project decisions. The most common forecasting techniques are based on averages. Sophisticated quantitative forecasting models can be formulated from basic average formulas. Regression analysis is a mathematical procedure for attributing the variability of one quantity to the changes in one or more other variables. Project inventory management is one quantitative approach to managing scope, cost, and schedule as a part of the project management knowledge areas. Inventory analysis is needed to support procurement goals as outlined in the project management body of knowledge. Many computerized commercial systems are available for tracking inventory. A good inventory management system is essential for supply chain and logistics management in an industrial project environment.
