dolution

One of the accountants responsible for forecasting at PlastiPharm used data for labor and materials from the prototype of one of their new products – data that was two months old. Because changes were made to the final product, this resulted in a forecasting error that cost the company more than $250,000 in labor and materials. Thereafter, the company implemented the use of rolling horizons to help them reduce errors in the future. How will the rolling horizons help increase the accuracy of their forecasts?

  • The company’s adoption of rolling horizons will allow the company to fix its sights on certain time frames for forecasting.
  • Reducing errors is tantamount in any company striving for perfection, and rolling horizons will allow the company to identify errors immediately.
  • Rolling horizons allow the company to review and refine its analysis as the time for allocation of resources approaches.
  • The accuracy of forecasting depends on retrieving accurate information; rolling horizons will allow the company to have immediate accurate information.
 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"