Scribd Logo
Upload

Welcome to Scribd!

  • Demand Forecasting

    Uploaded by

    Deepak Dutt Pandey
    15 views7 pages
    This document discusses three principal sources of uncertainty in demand forecasting: data about past and present markets, forecasting methods, and environmental changes. Data about past markets may be inadequate due to a lack of standardization, few observations, and abnormal influencing factors. Forecasting methods can be limited by their inability to handle unquantifiable factors and unrealistic assumptions. Environmental changes that introduce uncertainty include technological developments, shifts in government policy, international events, discoveries of new resources, and variations in weather patterns. To cope with uncertainty, analyses should use standardized data definitions, closely monitor the environment, and consider alternative scenarios and their impacts.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document discusses three principal sources of uncertainty in demand forecasting: data about past and present markets, forecasting methods, and environmental changes. Data about past markets may be inadequate due to a lack of standardization, few observations, and abnormal influencing factors. Forecasting methods can be limited by their inability to handle unquantifiable factors and unrealistic assumptions. Environmental changes that introduce uncertainty include technological developments, shifts in government policy, international events, discoveries of new resources, and variations in weather patterns. To cope with uncertainty, analyses should use standardized data definitions, closely monitor the environment, and consider alternative scenarios and their impacts.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    15 views7 pages

    Demand Forecasting

    Uploaded by

    Deepak Dutt Pandey
    This document discusses three principal sources of uncertainty in demand forecasting: data about past and present markets, forecasting methods, and environmental changes. Data about past markets may be inadequate due to a lack of standardization, few observations, and abnormal influencing factors. Forecasting methods can be limited by their inability to handle unquantifiable factors and unrealistic assumptions. Environmental changes that introduce uncertainty include technological developments, shifts in government policy, international events, discoveries of new resources, and variations in weather patterns. To cope with uncertainty, analyses should use standardized data definitions, closely monitor the environment, and consider alternative scenarios and their impacts.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    BYDEEPAK DUTT PANDEY 032

    UNCERTAINTY OF DEMAND FORECASTING


    Demand forecasts are subjects to error and uncertainty which arise from 3 principal sources:-

    1. Data about past and present market.


    2. Methods of forecasting. 3. Environmental changes.

    1. Data about past and present market


    The analysis of past and present market, which serves as the springboard for the projection exercise, may be vitiated by the following inadequacies data:

    Lack of standardization.

    Few observation.
    Influence of abnormal factors.

    2. Methods of forecasting
    Inability

    to handle unquantifiable factors. assumptions.

    Unrealistic Excessive

    data requirement.

    3. Environmental changes
    The environment in which a business functions is characterized by numerous uncertainties . The important sources of uncertainty are mentioned below: Technological change. Shift in governmental policy. Developments on the international scene. Discovery of new sources of raw material. Vagaries of monsoon.

    Coping with uncertainties

    Conduct analysis with database on uniform and standard definitions. Monitor the environment imaginatively to identified important changes. Consider likely alternative scenarios and there impact on market and competition.

    Thank You

    You might also like