Enforcement methods used and forecasting the demands
The enforcement method used is the Trend Project method. This method is the most classical business forecasting method that considers the movement of variables about time. It is the quantitative method that requires secondary data. The data should be long-time serial data that can help in predicting the demand for a product. This is only applied to long term series data.
Forecasting the demand
As discussed the Trend Perfect method uses the data that is in series, so to forecast the demand sales data of the previous year and current year is used to predict or forecast the upcoming demands.
The sales report of a current and previous session can help to identify the market demands in the past and the demands in the current year. With the predictive analysis, it can be observed hat would the demands in future. To conduct the predictive analysis, secondary data would be used and various techniques of analysis can be applied for future prediction.
As the prediction is based on market trend the accuracy is expected to be high. The sales reports from the previous year’s give the idea about the market trends and the sales report from current year reflects the ongoing trend. On comparing both present and past trends it becomes easier to forecast the upcoming trend. This in turns results in maximum accuracy.
It is essential studies the past demand and ongoing demands to get the accurate forecasting rate. This plays a vital role in predictive analyses as it affects decision making.
Overcoming and Improving Challenges
Although this analysis is considerate to be highly accurate there are still gaps in the analysis which can cause a major loss to the company. Incorrect data collection, wrong application of analysis tools could be some of the challenges. These challenges could be overcome by understanding the market and its changing patterns. This could be done by continuous monitoring of the ups and downs of the market.
The technological method used for forecasting
Exploration techniques are used for forecasting. It is mainly the process of searching for economical depth. This is conducted over a wide area and on prolonged duration to predict the upcoming trend.
Analysis of Demand Forecasting by Subject Academy
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