Demand Forecasting

• Forecast is an estimate about the future value of a

variable such as demand. The better the estimate,
more informed decision can be taken.

 Long Term: Strategic

 Short Term: Operational
 Classification of Demand
Forecasting Techniques
1. Judgmental Forecasts: Qualitative
2. Time-series Forecasts: Based on the historical data
with assumption that future will be like past.
3. Associative Forecasts: dependent and independent
variables
 Demand Forecasting
Accounting
Finance
HR
Marketing
MIS
Operators
Product Design
 Features of Demand Forecasting
1. Timely
2. Accurate
3. Reliable
4. In writing
5. Simple to understand and interpret
 Techniques of Demand Forecasting
1. Quantitative Methods
2. Qualitative Methods
 Qualitative Methods
1. Consumer Opinion Survey
2. Sales Force Composite
3. Group Discussion
4. Delphi Technique (Selected independent experts
answers questionnaires in two or more rounds,
without face to face interaction)
5. Market Simulation
6. Test Marketing
7. Market Research