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