Demand Forecasting - Factors , Purpose , Determinants, Criteria, Method.

1. Factors involved in Demand Forecasting
01
02
03
06
05
04
Types of
Project
Price of Material
Competition
Level
Economic
Viewpoint
.
Level of
Technology
.
Time Period of
Forecasts
.

2. Purpose of Forecasting
Fulfilling
objectives
Taking
Management
Decisions
Expanding
organizations
Preparing the budget
Stabilizing
employment and
production

3. Determinants of Demand
Demography&
Labour force
Price
Time , Test & Preference
Roles of government &
International business
Demand
Income &Production Prices of related incentives ;
Substitute & Complement
Investment
position

4. Forecasting Demand for
a New Product
Estimating Brand Cannibalization
Impact
Estimation of Raw material Supplier
Assessment
Forecasting Initial Sales Volumes of
New Products
Sales Volumes
Brand Cannibalization Raw Material

5. Estimation of Finished Goods
Manufacturing Capacity Assessment.
Determination of Initial Production
Quantity & Distribution
Monitoring Sales and Customer
Feedback during Launch Phase
Finished Goods Initial Production
Monitoring

6. 6
Criteria for a Good Forecasting
Availability Plausibility and
Possibility
Flexibility
&Acceptability
Yielding quick
results
Accuracy &
Durability
Maintenance of
timeliness
Forecasting provides relevant and reliable
information about the past and present events
and the likely future events so this is necessary
for sound planning

7. Survey of Buyer’s
Choice.
Collective Opinion
Method
Barometric Method
Expert Opinion Method
Statistical Methods
Methods of Demand Forecasting