Using Demand Forecasting Models

Demand forecasting models are past the point of academic curiosity, and although they are still in the early stages of their life cycle, they are well beyond the development stage. The modelling of demand phenomena may be viewed as having two main thrusts: the first is a scientific one that leads to a greater understanding of the phenomena. Here, the goal is to build either normative or descriptive models which advance knowledge. The second is a pragmatic thrust concerned with the capability of management science to aid decision makers. A model is demonstrated and its future potential assessed.