describe each method of forecasting future demand on the basis of past sales.

Expert Solution

There are five methods

1. Survey of buyers - The organization can do a survey from past buyers as to whether they would like to make a repurchase or whether they are looking a something new

2. Collective opinion - Since it is the salesperson who is closet to the consumer, the sales person is the one who predicts based on their experience whether there could be future sales demand. So it is the salesperson who makes the prediction on future sales demand.

3. Economic indicators - Based on the how the economy is performing and the phase the economy( recession, normal or boom) is in, we predict the demand.

4.Statistical method. Based on the historical sales, we can draw a trendline for the future expected demand or do a regression analysis to find the future demand statistically.

5. Expert Opinion - Here the business can take help of experts who have extensive knowledge about the demand and supply.

jeff jeffy answered 1 year ago

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