Expert Opinion
The Expert Opinion Method is about gathering expert insights to complement other forecasting methods, providing additional insights into future demand. It taps into expert knowledge to enhance forecasting accuracy.
Example:
IndiaPicture Studio relies on expert opinion to forecast future demand for its services. By consulting with industry experts, including directors, animators, and producers, the firm gathers valuable insights into emerging trends in animation and post-production.
Features:
- Utilization of Expert Insights: Expert Opinion involves gathering information from industry experts to predict future demand.
- Application in Limited Data Scenarios: It is commonly used when historical data is scarce or unavailable.
- Collection Methods: Expert Opinion can be obtained through surveys, interviews, or focus groups.
Advantages:
- Valuable Insights: Expert Opinion offers valuable insights into future demand, particularly when historical data is lacking.
- Validation of Forecasts: It can validate or complement other demand forecasting methods.
- Broader Perspective: Expert Opinion provides a broader outlook on future demand, considering factors not captured in historical data.
Disadvantages:
- Subjectivity: Expert Opinion may be subjective and influenced by personal biases or experiences.
- Time and Cost Intensive: Gathering expert opinions can be time-consuming and expensive.
- Accuracy Variation: The accuracy of expert opinion depends on the quality and expertise of the experts consulted.
Types of Demand Forecast
Demand Forecasting involves employing predictive analysis of past data to anticipate and project customers’ future demand for products or services. This process aids firms in enhancing supply-related decisions by projecting total sales and revenue for upcoming periods, typically by examining historical data. By utilizing demand forecasting, firms can optimize their inventory management and make informed choices regarding inventory planning, production, pricing, and other operational aspects, all guided by the anticipated future demand patterns.
Geeky Takeaways:
- Demand Forecasting involves predictive analysis of past data to anticipate and project future customer demand.
- This forecasting will help businesses make informed supply-related decisions.
- Demand Forecasting includes active demand forecasting, external macro forecasting, passive demand forecasting, the Delphi method, market research, econometrics, sales, internal demand forecasting, trend projection, expert opinion, micro-level forecasting, barometric forecasting, and sales channel forecasting.
- Other types of demand forecasting include historical data analysis, seasonality analysis, statistical analysis, and macro-level forecasting, among others.
Table of Content
- Types of Demand Forecast
- 1. Active Demand Forecasting
- 2. External Macro Forecasting
- 3. Passive Demand Forecasting
- 4. Delphi Method
- 5. Market Research
- 6. Econometrics
- 7. Sales
- 8. Internal Demand Forecasting
- 9. Trend Projection
- 10. Expert Opinion
- 11. Micro Level Forecasting