IDEAS home Printed from https://ideas.repec.org/a/wut/journl/v1y2017p5-19id1276.html
   My bibliography  Save this article

Forecast value added (FVA) analysis as a means to improve the efficiency of a forecasting process

Author

Listed:
  • Filip Chybalski

Abstract

A praxeological approach has been proposed in order to improve a forecasting process through the employment of the forecast value added (FVA) analysis. This may be interpreted as a manifestation of lean management in forecasting. The author discusses the concepts of the effectiveness and efficiency of forecasting. The former, defined in the praxeology as the degree to which goals are achieved, refers to the accuracy of forecasts. The latter reflects the relation between the benefits accruing from the results of forecasting and the costs incurred in this process. Since measuring the benefits accruing from a forecasting is very difficult, a simplification according to which this benefit is a function of the forecast accuracy is proposed. This enables evaluating the efficiency of the forecasting process. Since improving this process may consist of either reducing forecast error or decreasing costs, FVA analysis, which expresses the concept of lean management, may be applied to reduce the waste accompanying forecasting.

Suggested Citation

  • Filip Chybalski, 2017. "Forecast value added (FVA) analysis as a means to improve the efficiency of a forecasting process," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 27(1), pages 5-19.
    • Handle: RePEc:wut:journl:v:1:y:2017:p:5-19:id:1276
    DOI: 10.5277/ord170101
    as

    Download full text from publisher

    File URL: https://ord.pwr.edu.pl/assets/papers_archive/1276%20-%20published.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.5277/ord170101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hewage, Harsha Chamara & Perera, H. Niles & De Baets, Shari, 2022. "Forecast adjustments during post-promotional periods," European Journal of Operational Research, Elsevier, vol. 300(2), pages 461-472.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wut:journl:v:1:y:2017:p:5-19:id:1276. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam Kasperski (email available below). General contact details of provider: https://edirc.repec.org/data/iopwrpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.