McDonalds Forecasting

Please go to the following website and read the information about using Demand Management and Forecasting Techniques:

After reading through the case study, please post 3 different areas that would be helpful to forecast better for McDonald’s.  Include the type of model and what you are forecasting.  Also, comment on at least two of your classmates models as well.  I will be posting my comments throughout the week.


The main idea behind corporate forecasting is to minimize risk and uncertainty. In the case study in the discussion, McDonalds can use many of the forecasting techniques in different areas to help plan activities in advance. McDonalds can use economic forecasting, technological forecasting, transportation forecasting and sales forecasting. In the following discussion, I will be describing three of the forecasts that will help McDonalds plan their future business activities.

Sales Forecasting:

This is the main area McDonalds need to focus on. As it has been stated in the case study that they have a new stock management system. This will help them get the up to date information about their present status of the product stocks at different McDonald’s locations and give them an idea of what is the sales status. When they have an accurate view of the sales status, they will be clear about demand and supply and will not purchase extra material that could expire and cause financial loses.

Transportation Forecasting:

McDonalds have already setup a supply chain mechanism to supply products to their physical locations. If they use the techniques of transportation forecasting or transportation planning, they can save useful resources by minimizing their supply trips. They can do route assignment and find out the shortest routes for their supply vehicles.

Technology Forecasting:

In the present technological world, each business must be aware of its technical requirements and what it would need in the future. McDonalds also need to use the technology forecasting techniques and adopt to a model where they can effectively use technology on their side. For example the social media like Facebook and twitter can get McDonalds in direct communication with their customers for feedback and suggestions.