PRESENTATION ON

DEMAND FORECASTING
Presented by: SHAINA ARORA, 7309
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A “forecast” is a prediction for future.

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• Forecast of demand is basis for important planning decisions.

•Planning decisions regarding scheduling, inventory,

production, facility layout, design etc.
 STEPS IN DEMAND
FORECASTING
Clarity of Selection of Selection of
Interpreting
objectives goods method
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◦ .
STATISTISCAL Trend projection
METHODS method

Box Jenkins method

Barometric method

Econometric
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QUALITIES OF GOOD DEMAND FORECASTING

•Simplicity
•Accuracy
•Easy availability
•Economical
•Capacity to future updates
IMPORTANCE OF DEMAND FORECASTING
•Planning of production
•Sales forecast
•Control of business
•Decision making
•Policy making
•Useful for stability