DEMAND FORECASTING FOR

CABLES

This case study is related to bengal cables co. which

is engaged in manufacturing of cables required by
industry and housing.It can be analysed from the
case that due to industrialization ,power
development there is high demand for cables in the
market.As this product has no substitute and high
demand, price factor is not considered important
.There is strong correlation between all india cables
sales and peak demand for this year.
(a) the trend equation is
y = 1173+28.5xt
as per govt the peak demand for theyear 2010 is98.5
million KW
Total demand for cables =1173+98.5*28.5
3980.25million
Monthly sales for bengal cables = 20% of 3980.25 /
12
66.375
million
(b)R2 means coefficientof determination or explained
variation. R= .94 which means 94% variation in
peak demand is due to known factors while 6%
change in peak demand is due to other factors like
price.
Price is not considered an important factor for
determinig the all india cables demand as this
product has no subsitutes but while considreing
companys demand it is important to consider price of
the product due to competition factor. for a
company to survive in market it needs to keep a
track of its competetors .
(c)
As per the past trends it may or may not be true to
say that market share will be 20% in future.