Forecast Considerations

You should not rely exclusively on past data to forecast future demands. These circumstances might affect the business, and require you to review and modify the forecast:

• New products that have no past data.

• Plans for future sales promotion.

• Changes in national and international politics.

• New laws and government regulations.

• Weather changes and natural disasters.

• Innovations from competition.

• Economic changes.

You can use long term trend analysis to influence the design of the forecasts:

• Market surveys.

• Leading economic indicators.