Seven Steps in the Forecasting System
Forecasting follows seven basic steps. We use Disney World, the focus of this chapter’s Global Company Profile, as an example of each step:
Determine the use of the forecast: Disney uses park attendance forecasts to drive decisions about staffing, opening times, ride availability, and food supplies.
Select the items to be forecasted: For Disney World, there are six main parks. A forecast of daily attendance at each is the main number that determines labor, maintenance, and scheduling.
Determine the time horizon of the forecast: Is it short, medium, or long term? Disney develops daily, weekly, monthly, annual, and 5-year forecasts.
Select the forecasting model(s): Disney uses a variety of statistical models ...
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