Question

What do you understand by demand forecasting? Describe the various techniques of seasonal indices?

Answer 1

Any company increase or reduces it's production depending upon the demand of the product in general people.

So it becomes quiet vital for the company, to forecast the demand of the products, that they shall be engaged with, in the process of production.

So for the purpose of demand estimation, many calculations, and experience of experienced people are made in use.

Answer 2

Demand Forecasting refers to the process through which an estimation of probable demand for a product or services in the future is derived after taking into account of both controllable and non controllable factors .

Demand forecasting comprises of two words;

Demand and forecasting.

Seasonality in Forecasting

Seasonality refers to the changes in demand that takes place throughout the year in a regular annual cycle. It is caused by various factors that include regular weather patterns, religious events, traditional behaviour patterns and school holidays.

The various techniques of seasonal indices are as follows:

Seasonal Average Method,

Ratio to Moving Average Method,

Data Cleansing and Data Volatility

Seasonality in Weekly and Daily Forecasting