There are several methods businesses use for forecasting, each with its strengths and weaknesses. Some of the most common methods include:
- Qualitative Methods: These involve expert opinions, market research, and the Delphi method. They are useful when historical data is limited or when forecasting new products. - Quantitative Methods: These rely on historical data and statistical techniques. Time series analysis, causal models, and machine learning are popular quantitative methods. - Hybrid Methods: Combining qualitative and quantitative approaches can provide a more comprehensive forecasting model.