Objectives of demand forecasting

Demand estimation is predicting future demand form a product. The information regarding future demand is essential for planning and scheduling production, purchase of raw materials, acquision of finance and advertising.

The various techniques of demand estimation: –

  • Survey Method
  • Statistical Method

  • Survey Method

Survey method is generally used where the purpose is to make short run forecast of demand. Under this method, customer surveys are conducted to collect information about their intentions and future purchase plan. This method includes

1. Consumer survey method
2. Opinion Poll method