Types of Forecasting Methods:

• Qualitative Methods: These methods rely on expert opinions, market research, and customer surveys to predict future demand.
• Quantitative Methods: These methods use historical sales data and statistical techniques such as time series analysis and regression analysis to make forecasts.
• Causal Methods: These methods consider the cause-and-effect relationships between sales and external factors such as economic indicators, population demographics, and advertising expenditure.
• Time Series Analysis: This method involves analyzing past sales data to identify patterns and trends that can be used to forecast future sales.
• Regression Analysis: This statistical technique is used to identify the relationship between sales and other variables like price, advertising expenditure, and seasonality.

Factors Affecting Demand:

• Price: Changes in price can have a significant impact on demand. Generally, as the price of a product decreases, the demand for it increases, and vice versa.
• Consumer Preferences: Shifts in consumer preferences and trends can influence demand for certain products or services.
• Seasonality: Demand for certain products may vary based on seasonal factors such as weather, holidays, or cultural events.
• Competitor Actions: The actions of competitors, such as pricing strategies and product launches, can impact the demand for a product.

Key Metrics and KPIs:

• Sales Volume: The total number of units sold over a specific period of time.
• Market Share: The percentage of total sales in a market that is captured by a company's product or service.
• Inventory Turnover: The number of times inventory is sold or used in a given time period.
• Forecast Accuracy: A measure of how close the forecasted sales are to the actual sales.