Journal Article

Forecasting and operational research: a review

Crone, S F, Nikolopoulos, K, Syntetos, A A, Fildes, R

2008

Overview

From its foundation, operational research (OR) has made many substantial contributions to practical forecasting in organizations. Equally, researchers in other disciplines have influenced forecasting practice. Since the last survey articles in JORS, forecasting has developed as a discipline with its own journals. While the effect of this increased specialization has been a narrowing of the scope of OR's interest in forecasting, research from an OR perspective remains vigorous. OR has been more receptive than other disciplines to the specialist research published in the forecasting journals, capitalizing on some of their key findings. In this paper, we identify the particular topics of OR interest over the past 25 years. After a brief summary of the current research in forecasting methods, we examine those topic areas that have grabbed the attention of OR researchers: computationally intensive methods and applications in operations and marketing. Applications in operations have proved particularly important, including the management of inventories and the effects of sharing forecast information across the supply chain. The second area of application is marketing, including customer relationship management using data mining and computer-intensive methods. The paper concludes by arguing that the unique contribution that OR can continue to make to forecasting is through developing models that link the effectiveness of new forecasting methods to the organizational context in which the models will be applied. The benefits of examining the system rather than its separate components are likely to be substantial.

• Publisher: Taylor & Francis,Palgrave Macmillan Publishers,Palgrave Macmillan UK,Palgrave,Taylor & Francis Ltd
• Subject: Analytical forecasting / Applied sciences / Business and Management / Citations / Computer science; control theory; systems / Customer relationship management / data mining / Data processing. List processing. Character string processing / Econometrics / Economic forecasting models / Economic statistics / Exact sciences and technology / Firm modelling / Forecasting / Forecasting models / Forecasting techniques / Fuzzy sets / Inventory control, production control. Distribution / Inventory management / Logistics / Management / Management science / market models / Market strategy / Marketing / Memory organisation. Data processing / Methods / Modeling / Operational research and scientific management / Operational research. Management science / operations / Operations research / Operations Research/Decision Theory / Review Paper / Sales forecasting / Software / Statistical forecasts / Studies / supply chain / Supply chain management / Supply chains / Time series / Time series forecasting / Weather forecasting