Process of Demand Forecasting/ Steps in Demand Forecasting
Posted by Ripon Abu Hasnat on Tuesday, November 18, 2014 | 0 comments
Demand forecasting involves
the following steps:
1. Determine the purpose
for which forecasts are used.
2. Subdivide the demand
forecasting program into small I parts on the basis of product or sales
territories or markets.
3. Determine the factors
affecting the sale of each product and their relative importance.
4. Select the forecasting
methods.
5. Study the activities of
competitors.
6. Prepare preliminary
sales estimates after, collecting necessary data.
7. Analyze advertisement
policies, sales promotion plans, personal sales arrangements etc. and ascertain
how far these programs have been successful in promoting the sales.
8. Evaluate the demand
forecasts monthly, quarterly, half yearly or yearly and necessary adjustments
should be done.
9. Prepare the final demand
forecast on the basis of preliminary forecasts and the results of evaluation.
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