A way to predict profit for future.

1. Types & Significance of Demand Forecasting By- ShubhamSinghalSaurabhTripathi

3. Acc. to Benham”The demand for anything at a given price, is the amount of it which will be bought per unit of a time at that price.”

4. Forecasting stand for estimating or prediction.

9. The survey of buyers will provide:

10. Customers buying plan.

11. Total likely consumption of Product. MeritsDemerits 1) It comes directly from 1) Customers may misjudge. customers. 2) It is easy & inexpensive. 2) Consumers may get confuse due various alternatives.

13. Under this method, the salesmen have to report to the head office, their estimates of expectations of sales in their territories.

14. Also referred to as “Hunch Method "of Forecasting.E.g. Information obtained from retailers and wholesalers.

16. Views of Experts in their respective fields are taken.

17. These opinions are then exchanged among various experts of same fields.

18. Forecast is achieved by averaging these opinions.

19. Advantage-:

20. Depends upon experts research & analysis, so it is reliable as well.

22. This arrangement is called “Time Series”.

23. This time series represents the effective demand for a particular product .

26. Graphically or,

28. Graph of sales of the company using Trend Projection method.

29. Statistically, Constant Rate of Change= “ Y=mx+c” Here, Y= Sales by the company, m= Slope, x= Time Period, c= Intercept.

31. Helping the firms to reduce the cost for purchasing raw material.

32. Setting sales targets, establishing sales controls & incentives.