Meaning And Definition Of Demand Forecasting

Demand forecasting refers to a scientific and creative approach for anticipating the demand of a particular commodity in the market based on past behaviour experience data and pattern of related events.

Meaning and definition of demand forecasting. Demand means outside requirements of a product or service in general forecasting means making an estimation in the present for a future occurring event. What is demand forecasting. It is not based on mere guessing or prediction but is backed up by evidence and past trends.

Here we are going to discuss demand forecasting and its usefulness. Demand forecasting refers to the process of predicting the future demand for the firm s product. The demand forecasting serves as the reference point for all marketing control efforts.

The first one is demand and another forecasting. Demand forecasting involves quantitative methods such as the use of data and especially historical sales data as well as statistical techniques from test markets. Demand forecasting is a field of predictive analytics which tries to understand and predict customer demand to optimize supply decisions by corporate supply chain and business management.

It may be based on estimates of demand potential of the entire industry.