Demand forecasting methods can be broadly classified into two categories: quantitative methods and qualitative methods. Quantitative Methods
Time Series Analysis: Uses historical data to predict future demand. Common techniques include moving averages and exponential smoothing. Causal Models: Examines the relationship between demand and factors such as price, marketing efforts, and economic conditions. Regression analysis is a typical example.
Qualitative Methods
Expert Opinion: Relies on insights from industry experts to make demand predictions. Market Research: Uses surveys, focus groups, and other research methods to gather information directly from consumers.