Demand analysis and fore costing
Answers
Answer:
Demand analysis attempts to identify and measure the factors that determine sales, on the basis of which alternative methods of manipulating or managing demand can be worked out. Demand forecasting attempts to estimate the expected future demand for a product, which helps to plan production better.
Answer:
It is a technique for estimation of probable demand for a product or services in the future. It is based on the analysis of past demand for that product or service in the present market condition. Demand forecasting should be done on a scientific basis and facts and events related to forecasting should be considered.
Therefore, in simple words, we can say that after gathering information about various aspect of the market and demand based on the past, an attempt may be made to estimate future demand. This concept is called forecasting of demand.
For example, suppose we sold 200, 250, 300 units of product X in the month of January, February, and March respectively. Now we can say that there will be a demand for 250 units approx. of product X in the month of April, if the market condition remains the same.