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    Uncertainty of Demand Forecasting: BY-Deepak Dutt Pandey 032

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    Deepak Dutt Pandey
    There are three main sources of uncertainty in demand forecasting: 1) limitations and inconsistencies in past demand data, 2) unrealistic assumptions and inability of forecasting methods to account for all factors, and 3) unpredictable environmental changes such as shifts in technology, government policy, international events, and natural conditions. To cope with this uncertainty, forecasts should use standardized data, carefully monitor the external environment for changes, and consider alternative scenarios and their potential impacts.

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    Uncertainty of Demand Forecasting: BY-Deepak Dutt Pandey 032

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    Deepak Dutt Pandey
    43 views7 pages
    There are three main sources of uncertainty in demand forecasting: 1) limitations and inconsistencies in past demand data, 2) unrealistic assumptions and inability of forecasting methods to account for all factors, and 3) unpredictable environmental changes such as shifts in technology, government policy, international events, and natural conditions. To cope with this uncertainty, forecasts should use standardized data, carefully monitor the external environment for changes, and consider alternative scenarios and their potential impacts.

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    There are three main sources of uncertainty in demand forecasting: 1) limitations and inconsistencies in past demand data, 2) unrealistic assumptions and inability of forecasting methods to account for all factors, and 3) unpredictable environmental changes such as shifts in technology, government policy, international events, and natural conditions. To cope with this uncertainty, forecasts should use standardized data, carefully monitor the external environment for changes, and consider alternative scenarios and their potential impacts.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    43 views7 pages

    Uncertainty of Demand Forecasting: BY-Deepak Dutt Pandey 032

    Uploaded by

    Deepak Dutt Pandey
    There are three main sources of uncertainty in demand forecasting: 1) limitations and inconsistencies in past demand data, 2) unrealistic assumptions and inability of forecasting methods to account for all factors, and 3) unpredictable environmental changes such as shifts in technology, government policy, international events, and natural conditions. To cope with this uncertainty, forecasts should use standardized data, carefully monitor the external environment for changes, and consider alternative scenarios and their potential impacts.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    UNCERTAINTY OF

    DEMAND FORECASTING
    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.

    Unrealistic assumptions.

    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

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