Types of Demand Forecasting: Understanding and Implementing Effective Strategies
Types of Demand Forecasting: Understanding and Implementing Effective Strategies Demand forecasting is a critical component of business operations, enabling organizations to anticipate customer demand, manage inventory efficiently, and improve overall supply chain performance. Understanding the various types of demand forecasting helps businesses select the most appropriate method based on their goals and data availability. 1. Qualitative Demand Forecasting: Harnessing Expert Insights Qualitative demand forecasting relies on subjective methods such as expert opinions, market research, and focus groups to predict future demand. It is especially useful in situations where historical data is unavailable, such as when launching a new product or entering a new market. Key techniques include: Delphi Method : A structured approach where a panel of experts provides estimates and revises them iteratively until a consensus is reached. Market Research : Surveys and customer feedback help gauge d...