Forecasting - Meaning and significance

Forecasting is a technique of predicting the future based on the results of previous data. It involves a detailed analysis of past and present trends or events to predict future events. It uses statistical tools and techniques. Therefore, it is also called Statistical analysis. Forecasting acts as a planning tool that helps to get ready for the uncertainty that can occur in the future. 

Forecasting begins with management's experience and knowledge sharing.  

Significance of Forecasting:

• Provides reliable and relevant information about the present and past trends and future predictions that help in planning better.

• Gives the confidence to take important decisions.

• Helps in the handling of uncertainty efficiently

• Optimal utilization

• Managing stock out or surplus stocks

• Helps in managing short expiry

• Minimise Risk of Expiry

• Helps in making the best managerial decisions

Resources

• Standard Operating Procedure Manual, Procurement & Supply Chain Management, Central TB Division, Ministry of Health and Family Welfare, Government of India. 
• Companion Handbook to the WHO Guidelines for the Programmatic Management of Drug-resistant Tuberculosis. WHO, 2014.

Assessment