Meaning of Demand Forecasting
Posted by Ripon Abu Hasnat on Monday, November 17, 2014 | 0 comments
Future is uncertain. There
is great deal of uncertainty with regard to demand. Since the demand is
uncertain, production, cost, revenue, profit etc. are also uncertain. Through
forecasting it is possible to minimise the uncertainties. Forecasting simply
refers to estimating or anticipating future events. It is an attempt to foresee
the future by examining the past. Thus demand forecasting means estimating or anticipating
future demand on the basis of past data.
In
other word, Demand forecasting
is the activity of estimating the quantity of a product or service that
consumers will purchase. Demand
forecasting involves techniques including both informal methods, such as
educated guesses, and quantitative methods, such as the use of historical sales
data or current data from test markets.
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