Demand Forcasting

1. Welcome To
Presentation on
Demand Forecasting
And
It’s Techniques
Submitted By
Manish Kumar
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2.  Demand Forecasting
 Types of Demand Forecasting
 Methods of Demand Forecasting
Contents
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3. Demand forecast plays an important role
in planning for future level of production,
for launching a new product, for
expanding production capacity and for
entering an industry.
Introduction
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4. There are two types of Demand Forecast:
1) Short-term forecast
2) Long-term forecast
Types of Demand Forecasting
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5. There are several methods which can be used
to forecast future demand for the product.
The following are some of the important
alternative techniques used for forecasting
demand:
Methods of Demand
Forecasting
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6. 1) Consumer Survey Method
2) Expert Opinion
3) Market Experiments
4) Time Series Analysis
5) Econometric Method.
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7. To obtain information about future demand
for goods is to conduct a survey. A survey
indicates intentions of consumer about their
future spending on consumer goods.
Consumer Survey Method
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8. To obtain views of specialist who are well-
informed about the market possibilities of a
product. There may be outside experts such as
consultant firms, investment analysts who are
professionally trained for the purpose of
forecasting demand.
Expert Opinion Method
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9. Business firms can also make market
experiments to forecast demand for their
product especially when they make change
in price, advertising expenditure, or want to
introduce a new product in the market.
Market Experiments
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10. Time series analysis contains more than one
technique of forecasting future valve of a
variable if it shows a recognisable particular
pattern over time. The focus of time-series
analysis is to identify and decompose the
components of change in the data regarding
past behaviour of a variable.
Time Series Analysis
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11. Econometrics is used of statistical methods of
economic theory to estimate the casual
relationship between economic variables. It
enables us not only to forecast the direction of
change in an economic series but also the
magnitude of change.
Econometric Method
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12. Time to Ask ?
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13. Thank you
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