9.2 Forecasting methods
The type of a business and an industry sector will have a major bearing upon what type of forecasting methods are used within the organisation. However, as more computerised data is now available, there is a distinct trend to move towards more quantitative methods for data analysis, trend identification and forecasting.
Judgemental or subjective methods for forecasting include:
- Jury of expert opinion
- Sales force composite
- Customer expectations
Quantitative methods include:
- Moving average
- Straight line projection
- Exponential smoothing
- Regression
- Trend line analysis
- Simulation
- Life cycle analysis