The Application of Game Theory to Forecasting Orders

Abstract

The article deals with the effort to forecast the development of future sales over a period of several months. The ability to forecast is very important for a company in terms of being able to manage its working capital i.e. cash flow, materials, semiproducts, work in progress, products and receivables, according to the forecast. Forecasting is often very difficult, particularly in a situation when a company enters a new market and has insufficient data over a substantial period of time, in particular when we consider the seasonality of a product or service. The article therefore analyses the possible application of game theory to the forecasting of orders.

Keywords

• game theory
• forecast
• trade
• working capital management
• controlling