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A Review of different types of forecasting methods for demand forecasting.
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Q. A Review of different types of forecasting methods for demand forecasting. Ans. Demand forecasting is an amalgamation of two words which is demand and forecasting. Demands mean outside needs of a product or service, and forecasting means estimating a future event. Demand forecasting allows manufacturing companies to gain insight into what their consumer needs through a variety of forecasting methods. These methods include predictive analysis, conjoint analysis, client intent surveys, and the Delphi Method of forecasting. ● Market Research - This type of forecasting is based on the data collected through customer surveys. The method is time-consuming and tedious as one needs to send surveys to the customer and then tabulate data accordingly. The information gathered from this method cannot be collected from any other method, therefore, the efforts required by this method are worth it. It is an example of active demand forecasting. ● Online Surveys - Surveying is another method of demand forecasting. Online surveys are essential to target your audience in a less time-consuming manner. You can get valuable information from online surveys. It helps you better analyze your customer's demands and needs and identify new business opportunities. ● Trend projection - Trend projection uses your past sales data to project your future sales. It is the simplest and most straightforward demand forecasting method. It’s important to adjust future projections to account for historical anomalies. For example, perhaps you had a sudden spike in demand last year. However, it happened after your product was featured on a popular television show, so it is unlikely to repeat. Or your eCommerce site got hacked, causing your sales to plunge. Be sure to note unusual factors in your historical data when you use the trend projection method. ● Delphi Method - Delphi method provides market forecasts with the help of experts and skilled facilitators. In this method, a questionnaire is sent to a group of forecasting Experts. There are several rounds in data forecasting where you gather responses and share them with the panel of experts. The responses from each round are shared in the group anonymously to allow each expert to adjust their forecasts. This process is repeated multiple times until a consensus is achieved. The final agreement is determined by modifications made to their answers. The Delphi EN19CS306029 M. FAIZAN KHAN
