Question

Advantages of graphical method in demand forecasting

Answer 1

The main challenge to forecast demand is to select an effective technique.

There is no particular method that enables organizations to anticipate risks and uncertainties in future. Generally, there are two approaches to demand forecasting.

The first approach involves forecasting demand by collecting information regarding the buying behavior of consumers from experts or through conducting surveys. On the other hand, the second method is to forecast demand by using the past data through statistical techniques.