DEMAND MANAGEMENT PPT

DEMAND
MANAGEMENT
AND FORECASTING
Reported By:
Mary Ann P. del Rosario

DEMAND MANAGEMENT
 MACROECONOMICS use of monetary and fiscal policies to influence the aggregate demand for goods or services in an economy.  MICROECONOMICS activities in support of a firm’s products in their marketplace, such as stimulating the demand, estimating its volume, and planning the production accordingly. DEMAND MANAGEMENT
 is a planning methodology used to management and forecast the demand of products and services.
 is to coordinate and control all sources of demand so the productive system can be used efficiently and the product delivered on time. FORECASTING
is the process of making statements about events whose actual outcomes have not yet been observed. A commonplace might be estimation of some variable interest at some specified future date.  a scientific way to predict a future event. Starting with certain assumptions based on the management’s experience, knowledge, and judgment. It is a planning tool which helps management in its attempts to cope with the uncertainty of the future.

FORECASTING CATEGORIES
Quantitative Method- is an interrupted set of data observations that have been ordered in equally spaced intervals (units of time). Used to forecast future data as a function of past data; they are appropriate when past data are available.
Qualitative Method- are subjective, based on the opinion and judgment of consumers, experts; they are appropriate when past data are not available.

THREE CLASSES OF FORECASTING
METHOD
 Extrapolation –also called time- series methods. A set of data collected at regular intervals.  Causal- attempts to find a relationship between the variable to be forecast and one or more other variables.
 Judgmental- incorporate intuitive judgments, opinions and subjective probability estimates.

TYPES OF QUALITATIVE FORECASTING METHODS

 Executive Opinions
 Delphi Method
 Sales Force Polling
 Consumer Surveys

SIMPLE MOVING