Question

What are the different types of forecasts in demand forecasting?

Answer 1

There are three basic types—

• Time-series analysis and projection:focuses entirely on patterns and pattern changes, and thus relies entirely on historical data.
• Causal models:uses highly refined and specific information about relationships between system elements, and is powerful enough to take special events formally into account.
• Qualitative techniques: uses qualitative data (expert opinion, for example) and information about special events of the kind already mentioned, and may or may not take the past into consideration.