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Forecasting
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This lesson throws light on forecasting.

Harshit Aggarwal
Cleared UPSC ESE twice with Rank 63 and 90 in mechanical engg. Got 99 percentile in GATE. Cracked ONGC, BHEL,ISRO, SAIL, GAIL successfully

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  1. COURSE: INDUSTRIAL ENGINEERING LESSON: FORECASTING


  2. ABOUT ME Graduated from NIT Nagpur in 2008 Cleared Engineering Services Examination (ESE-UPSC) Exam Got the offer letter from most of the Maharatna and Navratna Companies Cleared GATE Exam Rate, Review, Recommend, Share Follow me on Unacademy at: https://unacademv.in/user/harshit aggarwal


  3. FORECASTING Forecasting can be termed as prediction of future sales or demand of a product. It is a projection based upon the past data and the art of human judgment. The survival of any organization depends upon how well they are able to project the demand in future. Advantage of forecasting 1. Forecasting determines the volume of production and the rate at which it is to be produced 2. It helps in determining the basis for material project, labor project, production budget etc. 3. Suggest the need for plant expansion 4. Helps in determining price policy. 5. Essential for product design and development 6. Helps in determining the extend of marketing, advertising and distribution required


  4. TYPES OF DEMAND VARIATION I. TrendVariation 2. Seasonal Variation 3. Cyclic Variation 4. Irregular


  5. TREND VARIATION 1. Trend variation: It shows a long term upward or downward trend in a product sales on a continuous scale. Demand -> Time


  6. SEASONAL VARIATION 2. Seasonal variation: This type of variation shows the short term regular variation in sales with respect to a time of a day or day of a week. Example Power consumption Demand Time


  7. CYCLIC VARIATIONS 3. Cyclic variation: It shows a long term wave like demand variation, normally lasting for more than a year. Example - Coolers, refrigerator,woollen clothes Demand Time


  8. IRREGULAR 4. Irregular: This type of demand variation is caused by sudden unusual circumstances that are different from the normal behavior such as government policy change, price hike, strike, shutdown, severe weather conditions etc. Demand Time


  9. THANK YOU