DEMAND

ESTIMATION AND
FORECASTING
PROF. SAMIULLAH SHAIKH
According to Evan J.Douglas: “ Demand forecasting
may be defined as a process of finding values for
demand in future periods”.

Significance of Demand Forecasting

1. Production Planning
2. Sales Target
3. Inventory Planning Control.
4. Appropriate Price Policy
 5. Planning of Resources
 6. Budget
 7. Control of Business
 8. Growth and Long Term Investment Programmes.
 9. Stability
 10. Taking Management Decisions
Methods/Techniques of Demand Forecasting:
1. Survey Methods.
2. Statistical Methods.

A. Survey Methods:
1. Consumer’s Survey Method
2. Collective Opinion Method
3. Expert Opinion Method/Delphi Method.
4. Market Experimentation:
 There are two types of market experimentation
 A. laboratory Experimentation.
 B. Test Marketing.
 B. Statistical Method
 1. Time Series Model
 A. trend Projection method.

 2. Econometric Model
 A. regression method
 B. simultaneous equation method.
 Practical problem based on least square, regression with
the help of excel