Demand Forecasting in Retail Selling
Demand Forecasting is predicting the future demand of our product in advance for a specific period of time on the basis of past historical data and current trends. It is useful in (1).Planning production of goods. (2).Budgetary Planning. (3).Suitable pricing and ad strategies. (4).avoiding wastage of products/goods Forecasting will vary depending upon kind of products for example (1). Consumer Durable goods (2).Non Durable Consumer goods (3).Producer Goods/Capital Goods Forecasting can be done at different Levels viz (1).Industry Level (2).Firm Level Forecasting can be for different time frame (1).Short term (6 months to 1 Year) (2). Long term (2 to 5 years) Methods of Demand Forecasting (1). Qualitative Method (Survey Method) (2). Quantitative Method (Statstical Method) Qualitative Methods:- (a). The Delphi Technique or Expert opinion Method (b). Sales Force Opinion/ Collective…