ANS 5 Demand forecasting - Demand Forcasting Is predicting...

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Demand Forcastin g : 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 v a r ious tec h ni q ues of d emand forcasting : - (1) Survey Method (2) Statistical Method (1)S urvey M e th o d : 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 (a) Consumer survey method (b) Opinion Poll method (a)C o n sumer survey me th od M a y be i n f orm o f : (i) Consumer enume r a tio n : - In this method, almost all the potential users of the product are contacted and are asked about the future plan of purchasing the product in question. The quantities indicated by the consumers are added together to obtain the probable demand for the product. (i i ) S am p le su rv ey metho d : - Under this method only a few potential consumers selected from relevant market through a sampling method are surveyed. (ii i ) E nd User M etho d : - The end user method of demand forecasting is used for estimating demand for inputs. Making forecast by this method requires building up a schedule of probable aggregate future demand for inputs by consuming industries and various other sectors. (b)O p ini on poll M e th o d : The opinion poll methods aim at collecting opinion of those who are supposed to possess knowledge of the market e.g. sales representative, professional marketing experts and consultants. The opinion poll method include
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