Demand forecasting is the process of estimating demand for a product in the future. It is important for inventory, production, and other business functions. There are various techniques for demand forecasting, including statistical methods like trend projection and regression analysis, as well as opinion-based approaches such as consumer surveys, sample surveys, and experts' opinions. The scope of demand forecasting includes factors like the period covered, level of forecasting, purpose, nature of the product, and other miscellaneous considerations.

1. DEMAND FORECASTING
Demand forecasting for a product is the
technique of estimating its demand in the
immediate or distant future . Demand
forecasting is important for Inventory ,
production , etc.

2. DEFINITION OF DEMAND FORECAST
• According to Douglas , “ Demand Forecasting will be
taken to mean the process of finding the values for
demand in future time periods.”
• Purpose of Demand forecasting:-
• 1. short term:-
• -a. production policy –b. Inventories –c. sales target. –
d. sales strategy. –e. financial requirements
• 2. long term:- 5 to 10 years
• -a. new project , expansion. -b. long term financial
needs. –c. arranging suitable manpower. –d. changing
pattern of consumption

3. SCOPE OF DEMAND FORECASTING
• 1. Period covered under forecasting
• -a . Short term forecasting
• -b. medium term
• -c. long term
• 2. level of forecasting
• -a. macro economic level
• -b. industry level
• -c. firm level
• -d. product line level
• 3. Purpose of forecasting
• 4. Nature of Product
• 5. Miscellaneous factors

4. TECHNIQUES OF FORECASTING
• 1. Opinion poll method
• -a. Consumer’s survey method
• -b. sample survey
• -c. end use survey
• 2. Collective opinion method
• 3. Experts opinion method
• 4. Statistical methods
• -a. Trend projection
• 5. Regression method
• 6. Simultaneous equation method