DEMAND
FORECASTING
By : Palak Upadhyay
and
Nidhi Joshi
(MBA FA 1st
sem.)
, INTRODUCTION
Demand forecasting is a systematic process that involves
anticipating the demand for the product and services of an
organization in future under a set of uncontrollable and
competitive forces .
In Demand forecasting mangers forecast the most likely future
demand of a product so that he can make necessary
arrangement for the various factor of production i.e. labor, raw
material, machines, money etc. Demand forecasting tells the
expected level of demand at some future date on the basis of
past and present information.
Accurate demand forecasting is essential for a firm to enable it
to produce the required quantities at right time and arrange
well in advance for various inputs .
, DEFINITION
In words of cundif and still , “Demand
forecasting is an estimate of sales during a
specified future period based on proposed
marketing plan and a set of particular
uncontrollable and competitive forces” .
Demand forecasting may be defined as the
process of finding value for demand in
future time periods .
- Evan j. Dogulas
, IMPORTANCE OF DEMAND
FORECASTING
Distribution of Resources : We know that inputs are processed to
result into output. These inputs include resources like materials ,
machinery and human resources.
The business firm also has to make decisions regarding capital
arrangement manpower planning and so on. In short the estimation of
demand enables the firm to undertake critical business decisions.
Helps in avoiding wastages of resources: Demand
forecasting is not an option but compulsion in today’s environment. In order
to avoid wastage it is always beneficial to have a sense of future demand for
product and services.
Serves as direction to production : if there is a proper
prediction of demand , then it serves as a handy tool for the business to
undertake future production activities . According to the demand in the
market , the company can control their production.
FORECASTING
By : Palak Upadhyay
and
Nidhi Joshi
(MBA FA 1st
sem.)
, INTRODUCTION
Demand forecasting is a systematic process that involves
anticipating the demand for the product and services of an
organization in future under a set of uncontrollable and
competitive forces .
In Demand forecasting mangers forecast the most likely future
demand of a product so that he can make necessary
arrangement for the various factor of production i.e. labor, raw
material, machines, money etc. Demand forecasting tells the
expected level of demand at some future date on the basis of
past and present information.
Accurate demand forecasting is essential for a firm to enable it
to produce the required quantities at right time and arrange
well in advance for various inputs .
, DEFINITION
In words of cundif and still , “Demand
forecasting is an estimate of sales during a
specified future period based on proposed
marketing plan and a set of particular
uncontrollable and competitive forces” .
Demand forecasting may be defined as the
process of finding value for demand in
future time periods .
- Evan j. Dogulas
, IMPORTANCE OF DEMAND
FORECASTING
Distribution of Resources : We know that inputs are processed to
result into output. These inputs include resources like materials ,
machinery and human resources.
The business firm also has to make decisions regarding capital
arrangement manpower planning and so on. In short the estimation of
demand enables the firm to undertake critical business decisions.
Helps in avoiding wastages of resources: Demand
forecasting is not an option but compulsion in today’s environment. In order
to avoid wastage it is always beneficial to have a sense of future demand for
product and services.
Serves as direction to production : if there is a proper
prediction of demand , then it serves as a handy tool for the business to
undertake future production activities . According to the demand in the
market , the company can control their production.
