demand fores casting & supply

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Demand Forecasting & Supply 1

PROJECT ON DEMANDPROJECT ON DEMANDFORECASTING &FORECASTING &

SUPPLYSUPPLY

SAKET COLLEGE OFSAKET COLLEGE OFMANAGEMENTMANAGEMENT

MMS YEAR 2009MMS YEAR 2009--20112011




Demand Forecasting And SupplyDemand Forecasting And Supply

Sneha BhosaleSneha Bhosale

Vitthal Thorat Vitthal Thorat

Yogesh Dubey Yogesh Dubey

Jagdish Rajpurohit Jagdish Rajpurohit

Shobhita JoseShobhita Jose

Upasana SinghUpasana Singh

Prabjyot Kaur SeehraPrabjyot Kaur Seehra Vivekanand Thoral Vivekanand Thoral



DEMANDDEMAND

FORECASTINGFORECASTING

What is Forecast?What is Forecast?

What is Demand Forecast?What is Demand Forecast?




Need For DemandNeed For Demand

ForecastingForecasting Range of possibilities in futureRange of possibilities in future

Reduce the degree of riskReduce the degree of risk

To guide business policy decisionsTo guide business policy decisions

To have effective controlTo have effective control




Types of Demand ForecastingTypes of Demand Forecasting

Passive And Active Forecast Passive And Active Forecast

Short term And Long term Forecast Short term And Long term Forecast

Macro level And Micro level Forecast Macro level And Micro level Forecast

Forecast for Total Market And Market Forecast for Total Market And Market SegmentsSegments




Steps in Demand ForecastingSteps in Demand Forecasting

Nature of Forecast Nature of Forecast

Nature of Product Nature of Product

Determinants of DemandDeterminants of Demand

Choice of MethodChoice of Method

Testing AccuracyTesting Accuracy




Methods of Demand ForecastingMethods of Demand Forecasting

ForecastingMethods

Survey Method Statistical method

Experts

Opinion

Delphi

Method Consumer Survey

Trend

Analysis

Regression

Method

Leading

Indicator Analysis




SupplySupply

What is supply?What is supply?

Supply is the amount of a commodity that Supply is the amount of a commodity that producers are able and willing to offer in aproducers are able and willing to offer in amarket at a given pricemarket at a given price




The Law Of SupplyThe Law Of Supply

Other things being equal more of a good Other things being equal more of a goodis supplied at a higher price than at ais supplied at a higher price than at a

lower price.lower price.

There is a direct relationship betweenThere is a direct relationship betweenprice and quantity supplied.price and quantity supplied.




Assumption For The Law Of Supply Assumption For The Law Of Supply

Prices of other commodities remainPrices of other commodities remainconstant constant

No change in cost of productionNo change in cost of production No change in transport cost No change in transport cost

No change in technologyNo change in technology

No change in government policiesNo change in government policies No change in tasteNo change in taste




The Supply CurveThe Supply Curve

The supply curve is the graphicThe supply curve is the graphicrepresentation of the Law of Supplyrepresentation of the Law of Supply

The supply curve slows upward from left The supply curve slows upward from left to right to right

The slope tells that there is a direct The slope tells that there is a direct relation between price and quantityrelation between price and quantitysupplied.supplied.




Determinants Of SupplyDeterminants Of Supply

PricePrice

Cost of productionCost of production

Availability of inputs Availability of inputs Technique of productionTechnique of production

Type of market Type of market

Infrastructure facilityInfrastructure facility




Variation In SupplyVariation In Supply

There are two types of Variations Of There are two types of Variations Of SupplySupply

1)1) Extension (expansion) OF SupplyExtension (expansion) OF Supply

2)2) Contraction Of SupplyContraction Of Supply




Variations In SupplyVariations In Supply

Extension (expansion) Of SupplyExtension (expansion) Of Supply

-- It means more is supplied at a higherIt means more is supplied at a higher

price.price.-- It is the responsiveness of supply to anIt is the responsiveness of supply to an

increase in price, other things remainingincrease in price, other things remainingthe same.the same.

-- It is shown with an upward movement onIt is shown with an upward movement onthe supple curve.the supple curve.




Contraction Of SupplyContraction Of Supply

Contraction Of SupplyContraction Of Supply

-- It means less is supplied at a lower price.It means less is supplied at a lower price.

-- It is the responsiveness of demand due toIt is the responsiveness of demand due todecrease in price, other things remainingdecrease in price, other things remainingthe same.the same.

-- It is a downward movement on the supplyIt is a downward movement on the supplycurve.curve.




Changes In SupplyChanges In Supply

There is two types of changes in supply:There is two types of changes in supply:--

1) Increase In Supply1) Increase In Supply

2) Decrease In Supply2) Decrease In Supply





Increase In SupplyIncrease In Supply

-- It means more is supplied at the sameIt means more is supplied at the sameprice or same quantity is supplied at aprice or same quantity is supplied at alower price.lower price.

-- It is the changes in factors other thanIt is the changes in factors other thanprice.price.

-- It curve is shown by a shift of the supplyIt curve is shown by a shift of the supplycurve to the right of the original supplycurve to the right of the original supplycurve.curve.





Decrease In Supply:Decrease In Supply:

-- It means less supply at the same price orIt means less supply at the same price or

same quantity supplied at a higher price.same quantity supplied at a higher price.-- It also takes place due to factors otherIt also takes place due to factors other

than price.than price.

-- It curve is shown by shifting the supplyIt curve is shown by shifting the supplycurve to the left.curve to the left.

demand fores casting & supply

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