What is the meaning of Forecast? Concept, Definition of Forecast

Definition of forecast

On this website you will find one or more meanings in your language for the word or expression: forecast. As well as definitions of Wikipedia pages and other Web pages related to the word forecast and, of course, synonym of forecast with appropriate images related to the use of this expression.

1. Concept of forecast

Sales forecast call calculation that makes the Sales Department of a company's turnover to held the next year. The realization of a correct sales forecast is vital for a company because it is derived from the budget of income and expenditure and therefore, estimates of manufacturing, procurement, logistics and human resources. It should be noted that sales forecast does not usually coincide with sales targets that are set to the commercial network that tend to be superior to encourage the efforts of vendors.
Sales forecasting methods
The usual methods of sales forecasting include the following.
• Simple. Applies the same percentage of growth in the current year to next year. He is an easy-to-apply method suitable for traditional sectors with little movement. It is also common in utilities (gas, electricity, water) in which the demand hardly varies from year to year.
• Consultation to the sales network. Vendors are those who best know our market by what should be involved in the estimate on its evolution. View to the commercial network on their perception of growth in the coming year.
• Extrapolation of the trend. Take sales in recent years and he is a linear regression. The resulting trend is applied as a growth figure for next year.
• Estimation of the needs of the customers. It is suitable for companies with small number of customers that there is a strong commercial link (see, for example, the automotive components sector). In this case, sales forecasts will come from the own estimates of consumption of its customers.
• Correlation. Certain items are closely linked to the evolution of a sector in particular. In such a case, the forecast of growth in this sector will be taken to calculate the own. The forecast may come from estimates of State institutes or the corresponding sectoral organization. Consider the case of the manufacturers of cement in relation to the evolution of public works or the bricks for construction.
• Coverage. In the case of landings in new markets or introduction of new ranges of product in existing markets, will be necessary to carry out estimations about the market share expected to reach thus obtaining sales and applying it on the total volume of the market.

2 Meaning of forecast

The word welfare comes in its etymology from the latin "praevisĭonis", which implies assume future events, based on known data or signs that precede it, allowing you to take the necessary measures so that the person or society in its case, will be more prepared to deal with it or enjoy it.
When a forecast of the climate, is done through the weather forecast, we take care to not leave if there is urgency and a storm front is expected, or we can keep the car if hail is coming.
The man thanks to his reasoning, might buffer the effects of certain phenomena or natural circumstances, taking measures in this regard, for example, in flood-prone areas should take the forecast to build over heights.
The story also allows us to predict what may happen in the future taking into account what happened before, in order to take steps (estimates). For example, if there has been fraud in previous democratic elections, you can take the forecast exercise more controls.
In law, a way people predict the fate of their property, is the right to make a will, and at the social level, taking into account certain contingencies, are planned their remedies, as retirement to leave the elderly without support after a lifetime of work. In this sense, there are laws and institutions at national and local levels to regulate these social contingencies.
At the enterprise level is very useful make a forecast of expenditures, sales or purchases in order to carry out effective planning and fit the budget.

3. Definition of forecast

Forecast is a term that comes from the latin praevisĭo which refers to the action and effect predict (guessing what is going to happen through the interpretation of signs or signals; see in advance and prepare media for future contingencies).
For example: "press forecast was correct: the couple did not last three months or", "I'd like that your forecast is met, but I think it will be rather complicated", "this year we will win 100,000 pesos, if it does not fail the forecast of the counter".
The concept of forecast is similar to the idea of prognosis (knowing the future through signs). Forecasts, are therefore used in meteorology to indicate what will happen to the climate in the next few days according to the conclusions of the analysis of the weather conditions.
This means that experts, to study the image satellite, winds, temperature and other data, can foresee if in a given territory it will rain, it will be sunny days, it snows, etc.: "weather forecasts anticipated days in pure Sun in the city of San Camilo", "If the weather forecast is correct, morning enjoy a day at the beach".
A forecast can also be a palpitation or a conjecture about a particular event. In the days prior to the delivery of the Academy Awards, the journalists made their forecasts about who will be the winners ("John Volskty forecast indicates that the work of the French filmmaker will stay with the award for best film").