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# Demand forecasting

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### Transcript

• 1. DemandForecasting
• 2. DEMANDFORECASTING:A demand forecast is the prediction of whatwill happen to your companys existingproduct sales.Demand forecasting is the activity ofestimating the quantity of a product orservice that consumers will purchase.Demand forecasting involves techniquesincluding both informal methods, such aseducated guesses, and quantitativemethods, such as the use of historical salesdata or current data from test markets. Itmay be used in making pricing decisions, inassessing future capacity requirements, or in
• 3. Determination of the demand forecasts isdone through the following steps:1 Determine the use of the forecast2 Select the items to be forecast3 Determine the time horizon of the forecast4 Select the forecasting model(s)5 Gather the data6 Make the forecast7 Validate and implement results.
• 4. Methods of forecasting1. Too much emphasis should not be placed onmathematical or statistical techniques offorecasting. Though statistical techniques areessential in clarifying relationships and providingtechniques of analysis, they are not substitutes forjudgment.2. Forecasting also should not be left entirely to thejudgment of the so-called experts.What is needed is some commonsense meanbetween pure guessing and too much mathematics.
• 5. Various Methods of Forecasting Survey of Buyers’ Intentions Market Survey Studies.1. Delphi Method2. The Collective Opinion also called as Sales Force Pollingor Expert Opinion polls.3. Analysis of Time Series and Trend Projections4. Use of Economic Indicators – Regression Analysis andEconomic Model Building.5. Controlled Experiments – Test Marketing.6. Judgmental Approach