ABSTRACT
This project examines the role of forecasting techniques in achieving the organizational goals. A case study use was Nestle Food Nigeria Plc Agbara Ogun State. The meaning of forecasting is the systematic process of anticipating into the future causes of event, through analysis of the past and present behaviours. The problems associated with each forecasting scheme are also discussed and investigations were conducted through the use of questionnaires with the aid of hypothesis testing the result after conducting this research points out that forecasting techniques helps the organization.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Forecasting is the process of making Entertainment about an events while actual outcomes (typically) have not get been observed a commonplace example might be estimation of some variable of interest at some specified fulltime data. Prediction is a similar, but more general term. Both might refer to formal statistical methods employing time serving cross-sectional or longitudinal data, or alternatively to loss formal judgmental methods. In any case, the data must be up-to-date in order for the forecasting to be as accurate as possible.
The role of forecasting techniques in a business organization is in order to achieve organizational goals that cannot be over-emphasized. Plan can be made only be the basis of what the organization products and in their world outside. This means that likely events and conditions must be forecast before plan for the attainment of the goal that is set up for the organization it helps him with necessary planning assumptions or premises and this consequently avoiding the tendency of “shooting in the dark”.
Usage can differ between areas of application: for example in hydrology, the terms “forecast and forecasting” are sometimes resewed for estimates of values at certain specific future times, while the term “prediction” is used for more general estimates such as the no of times flood will occur a long period.
Good forecasting is an essential part of efficient service and manufacturing operation unline Nestle Foods Nigeria Plc that predict the future of their product before manufacturing the product and also use it as a tool to capture the market. It is the art and science of predicting the future events.
Forecasting may involve taxing historical data and projecting them into the future with some sort of mathematical models. It may involve a combination of these that is a mathematical models adjusted by a managers good judgment. Therefore, forecasting are integral part of human activities that is, every human being does forecast and for any business organization to be efficient and achieving its organizational goal, there is need to forecast or predict what is likely to happen in the future of their business. More so, decision making is based on the available information, which often takes the form of estimates of future value of variables. Estimates of future revenue are necessary for planning stock control policy cash budgeting and capital expenditure.
Forecasting is an important tool for handling decision relating to future state of the world and business organization goal. If the forecast is correct, then the advancement of the organization goal will be made easier, management decision on both policy and on day matter are often concerned with estimating the future course of some events. For instance Nestle Food Nigeria Industries as a manufacturing company has to estimate the possible public reaction to a new product their customers likely requirement in order to decide on its stock policy and they also need to estimate the cost of production in order to meet the standard price in the market. All things being equal, forecasting create the opportunity for a manager to calculate or predict some future events or condition.
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