Statistical Forecasting

The two major statistical forecasting approaches are time series forecasting and model-based forecasting. They serve different purposes:

Time Series Forecasting Model-Based Forecasting
Purpose Tactical: short-term forecasting, determining seasonal patterns Strategic: long-term forecasting, accounting for changes in the business environment and events with little data
Requires Historical data Management insight
Results Short-term changes Change in business practice
Applications  Demand planning, Production planning, Inventory management, Salesforce evaluation Marketing strategy, Resource allocation, Business optimization, Comparing business plans

 

Learn more about specific forecasting methods: