Answer to Question #178711 in Finance for Sarfaraz

Question #178711

2. Demand forecasting is not a speculative exercise into the unknown. It is essentially a reasonable judgement of future probabilities of the market events based on scientific background. Explain the statement by elaborating different qualitative and quantitative methods of demand forecasting.


1
Expert's answer
2021-04-08T07:27:54-0400

Demand forecasting is the process in which historical sales data is used to develop an estimate of an expected forecast of customer demand.


There are two types of forecasting methods: Qualitative and Quantitative.


Qualitative techniques are the ones which apply knowledge of the business, market, product and customer to make a judgment call on the forecast. These techniques are primarily based on opinion, like the Delphi Method, Market Research, Panel consensus etc.

Quantitative methods come in two main types: time-series methods and explanatory methods. Time-series methods make forecasts based purely on historical patterns in the data.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS