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SCRC Article Library: Forecasting Methods

Forecasting Methods

Published on: Jan, 19, 2011

Qualitative forecasting techniques

An approach to forecasting that is based on intuitive or judgmental evaluation. It is used generally when data are scarce, not available, or no longer relevant. Common types of qualitative techniques include: personal insight, sales force estimates, panel consensus, market research, visionary forecasting, and the Delphi method. Examples include developing long-range projections and new product introduction.

Quantitative forecasting technique

An approach to forecasting where historical demand data is used to project future demand. Extrinsic and intrinsic techniques are typically used.

p. Graphical forecasting methods

The use of visual information to predict sales patterns typically involves plotting information in a graphical form. It is relatively easy to convert a spreadsheet into a graph that conveys the information visually. Trends and patterns of data are easier to spot, and extrapolation of previous demand can be used to predict future demands.

Trend forecasting models

Methods for forecasting sales data when a definite upward or downward pattern exists. Models include double exponential smoothing, regression, and triple smoothing.

Source: http://www.apics.org/ (10th ed.)

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