Consumer’s end use method for demand forecasting

Consumer’s End Use Method For Demand Forecasting

Presented By : Nisarg Prabhat Preetha Rekha Sahil Manohar Rishikesh

Demand Forecasting• Demand Forecasting essentially involves ascertaining the

expected level of demand during the period under consideration.

• Sales is function of demand.• Types of Demand Forecasting 1.Short term Demand Forecasting 2. Medium term Demand Forecasting 3. Long term Demand Forecasting

Consumer’s End Use Method This method focuses on forecasting the demand for

intermediary goods. The demand for the good in different uses is taken into

consideration. Example: Milk is commodity which can be used as an

intermediary good for the production of ice cream and other dairy products.

Cement may be used for constructing houses, hotels, bridges, etc.

Accurate Predictions

Provide Sector wise demand forecast for different industries.

Especially useful for producers goods.

Advantages

Disadvantages• Requires complex and diverse calculations

• Costly

• Time consuming

• Industry data may not be readily available.

End Use Analysis For Water Demand Forecasting.• Separate Water demand into different Sectors like

Residential, industrial

• Separate Residential into end uses like Showers, toilets , Kitchen, baths etc.

Benefits• Detailed understanding of ‘How’ water is used and how this

may change over time• Uses concept of the ‘Unit of service’ and not just ‘supplying

volume of water’.

Limitations• Data on end uses may not be available• Takes more time

References• www.google.com• www.slideshare.net• www.wikipedia.org• WEDC lolbrough Univercity

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