For Disney World, there are six main parks. A forecast of daily attendance at each is the main number that determines labour, maintenance, and scheduling.

Disney develops daily, weekly, monthly, annual, and 5-year forecasts.

3

At Disney, forecasts are reviewed daily at the highest levels to make sure that the model, assumptions, and data are valid.

Disney uses a variety of statistical models including moving averages, econometrics, and regression analysis. It also employs judgmental, or nonquantitative models.

Disney uses park attendance forecasts to drive decisions about staffing, opening times, ride availability, and food supplies.

Disneys forecasting team employs 35 analysts and 70 field personnel to survey 1 million people/business every year.

Disney uses a firm called Global Insights for travel industry forecasts and gathers data on exchange rates, arrivals into the U.S., airline specials, Wall Street trends, and school vacation schedules.

At Disney, Error measures are applied; then the forecasts are used to schedule personnel down to 15- minute intervals.

With reference to the above mentioned abstract, discuss the strategic importance of forecasting for Disney (6) and demonstrate how Disney World systematically uses the first seven (14) steps in the forecasting process to initiate, design and implement forecasting systems.

Question 6 (20 Marks) Read the following passage and facts on Disney World and answer the question that will follow - For Disney World, there are six main parks. A forecast of daily attendance at each is the main number that determines labour, maintenance, and scheduling. - Disney develops daily, weekly, monthly, annual, and 5-year forecasts. 3 - At Disney, forecasts are reviewed daily at the highest levels to make sure that the model, assumptions, and data are valid. - Disney uses a variety of statistical models including moving averages, econometrics, and regression analysis. It also employs judgmental, or nonquantitative models. - Disney uses park attendance forecasts to drive decisions about staffing, opening times, ride availability, and food supplies. - Disney's forecasting team employs 35 analysts and 70 field personnel to survey 1 million people/business every year. - Disney uses a firm called Global Insights for travel industry forecasts and gathers data on exchange rates, arrivals into the U.S., airline specials, Wall Street trends, and school vacation schedules. - At Disney, Error measures are applied; then the forecasts are used to schedule personnel down to 15- minute intervals. Source: Scenario adopted from sustainability and supply chain management, 12th edition. With reference to the above mentioned abstract, discuss the strategic importance of forecasting for Disney (6) and demonstrate how Disney World systematically uses the first seven (14) steps in the forecasting process to initiate, design and implement forecasting systems