ABSTRACT
This chapter provides a state-of-the-art presentation of the critical issues. It begins with an overview of the practice of forecasting by looking at its far reaching impact on Production and Operations Management (POM) decisions and organizational costs, as well as its role in non-typical POM environments. The chapter discusses the forecasting process and factors guiding method selection. It presents a deep discussion of forecasting methodologies from judgment to statistical methods, to combination methodologies that have been shown to be particularly successful in both research and practice. The chapter considers the future of forecasting, including the role of big data analytics and information, and implications for both managers and researchers. Forecasting is the process of predicting future events. This can range from forecasting product demand, such as demand for the next iPhone, to forecasting the passage of a healthcare bill in Congress. Consider the full range of POM decisions, from inventory ordering, production planning, scheduling, to project management.
