Forecasting Practices
Int. J. Production Economics 70 (2001) 163}174
Forecasting practices of Canadian "rms: Survey results and comparisons
Robert D. Klassen , Benito E. Flores *
Richard Ivey School of Business, University of Western Ontario, London, Ont., Canada N6A 3K7 Lowry Mays School of Business, Texas A&M University, College Station, TX 77843-4217, USA Received 20 March 2000; accepted 4 May 2000
Abstract A survey of forecasting practices was carried out to provide a better understanding of Canadian business practices, and when possible, compare them with US practices. Companies in the US and Canada have the same use for forecasting information. Forecasts are generated and used mostly by marketing/sales. Judgmental procedures are used more frequently than any other method. Quantitative, causal and newer methods are not used as much. In line with this, "rms do not keep as much data per product/service forecasted. Senior management revises the forecast frequently and believes that on average, accuracy is improved by the revision. Calculation of improvement metrics shows that the variation in the improvement may negate the advantage gained. 2001 Elsevier Science B.V. All rights reserved.
Keywords: Forecasting; Survey; Canada
1. Introduction The objective of this paper is to report the results of a survey designed to evaluate forecasting practices in businesses. Forecasting practices vary in the countries with which the United States (US) trades. The two largest trading partners of the US are Canada and Mexico. The three of them are the NAFTA partners. It behooves us to learn more about the practices of "rms in the North American Region. For this reason Canadian "rms were surveyed.
* Corresponding author. Tel.: #1-979-845-4248; fax: #1979-845-5653. E-mail address: b-#ores@tamu.edu (B.E. Flores).
From a business standpoint, forecasting is very important. The decisions that "rms make using forecasts go from the elaboration of budgets, market planning, to capital
Forecasting practices of Canadian "rms: Survey results and comparisons
Robert D. Klassen , Benito E. Flores *
Richard Ivey School of Business, University of Western Ontario, London, Ont., Canada N6A 3K7 Lowry Mays School of Business, Texas A&M University, College Station, TX 77843-4217, USA Received 20 March 2000; accepted 4 May 2000
Abstract A survey of forecasting practices was carried out to provide a better understanding of Canadian business practices, and when possible, compare them with US practices. Companies in the US and Canada have the same use for forecasting information. Forecasts are generated and used mostly by marketing/sales. Judgmental procedures are used more frequently than any other method. Quantitative, causal and newer methods are not used as much. In line with this, "rms do not keep as much data per product/service forecasted. Senior management revises the forecast frequently and believes that on average, accuracy is improved by the revision. Calculation of improvement metrics shows that the variation in the improvement may negate the advantage gained. 2001 Elsevier Science B.V. All rights reserved.
Keywords: Forecasting; Survey; Canada
1. Introduction The objective of this paper is to report the results of a survey designed to evaluate forecasting practices in businesses. Forecasting practices vary in the countries with which the United States (US) trades. The two largest trading partners of the US are Canada and Mexico. The three of them are the NAFTA partners. It behooves us to learn more about the practices of "rms in the North American Region. For this reason Canadian "rms were surveyed.
* Corresponding author. Tel.: #1-979-845-4248; fax: #1979-845-5653. E-mail address: b-#ores@tamu.edu (B.E. Flores).
From a business standpoint, forecasting is very important. The decisions that "rms make using forecasts go from the elaboration of budgets, market planning, to capital
References: [1] D.J. Dalrymple, Sales forecasting methods and accuracy, Business Horizons 18 (1975) 69}73.