DEFINE FORECASTING AND ITS TYPE?

DEFINE FORECASTING AND ITS TYPE?

Forecasting is a tool used for predicting future demand based on past demand information. It is helpful in companies and organisation for predicting future profits.

Types of forecasting methods: There are two types of forecasting methods qualitative and quantitative methods they are discussed below: 

Qualitative forecasting methods: 

  1. Market Research: trying to identify customer habits new product ideas.
  2. Panel Consensus: deriving future estimations from the synergy of a panel of experts in the area.
  3. Historical Analogy: identifying another similar market.
  1. Delphi Method

Quantitative forecasting methods: 

Time Series: models that predict future demand based on past history trends

Causal Relationship: models that use statistical techniques to establish relationships between various items and demand.


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