Time Series Forecasting Methods:

Time-series forecasting methods are based on the approach that future demand may be largely determined by what happened in the past. The objective of making a time-series analysis is to reveal an underlying pattern in the procedure generating demand. The knowledge of such as pattern helps to prepare more accurate forecasts of future demand with the assumption that the process remains basically the same. Although, if significant changes have occurred in the environment, such like embargo on petroleum oil, economic recession, or liberal import policies, which are not reflected in the available historical data, a forecast obtained from the time-series analysis may and should be adjusted, although subjectively, to portray current conditions.