Delphi Method:

It is a very popular method that utilizes the subjective opinions more effectively for the preparation of demand forecast. This approach uses a questionnaire that is given to a panel of experts, and responses are collected about the future demand. A summary of responses is prepared and given to the panel of experts so that they can revise their original guesses if they so desire. This feedback mechanism facilitates to arrive at an estimate of demand most people will accept. There can be several rounds of feedback before some sort of consensus is arrived at. An important feature of this method is that even remarkably different opinion is not ignored although less weight age may be given to that.

The cost of this method mainly depends on the cost of the time of experts, which in many cases can be substantial. This method is used for a variety of long-term predictions, particularly in cases where relevant available historical data is insufficient. Specific applications include developing new products, attaining new capacity and penetrating new markets.