Forecasting Methods:

There are various kinds of forecasts that an organization needs for planning for the future. Which kind of forecast should be used in which case depends on the activity being planned and the length of planning horizon. The selection of the specific method for preparation of forecast for a specific application will be affected by the constraints like the availability and quality of relevant data, available expertise and time, etc. Demand forecasting techniques fall into three major groups :

1. subjective (or predictive),

2. casual, and

3. time series.