There are several methods to forecast demand, each with its own advantages and limitations:
Qualitative Methods
Expert Opinion: This method relies on the judgment and experience of industry experts to predict future demand. Market Research: Surveys and focus groups can provide insights into consumer preferences and potential demand.
Quantitative Methods
Time Series Analysis: This involves analyzing historical data to identify patterns and trends that can be used to forecast future demand. Causal Models: These models consider various factors that may influence demand, such as economic indicators, marketing efforts, and competitive actions. Machine Learning: Advanced algorithms and artificial intelligence techniques can be used to analyze large datasets and make predictions.