Saturday, July 23, 2016

Demand forecasting

Forecasting is a necessary pre-requisite to most operational activists.  Demand is what customers would buy if they could.

Management is continually faced with fast-paced flow of business planning and decision-making situations. A forecast of some type is used as a basis to meet many of these needs, whereby, the more reliable the forecasts, the better the outcome for the planning and decisions.

A demand forecasting is a firm’s best estimate of what demand will be on the future given a set of assumptions.

According to American Marketing Association, demand forecasting is an estimate of sales in dollars or physical units for a specified future under a proposed marketing plan.

The definition of demand forecasting can also be made more relevant by contrasting the process of demand forecasting with two other business activities: business planning and goal setting.

It is a useful tool that can provide a variety of stakeholders for example airport and airline owner, potential inventors and the government - with useful insight into the potential future developments relating to both airports and airlines.
Demand forecasting

Popular Posts