CHALLENGES IN FORECASTING.

1. Unpredictable- Human judgment and memory are unreliable.
2. Accuracy- It is difficult to achieve it.
3. Seasonality- In terms of consumption or availability of a commodity.
4. Promotions/Events
5. Response to trends-A trend is a long term movement either upward or downward forecast than for other.
6. Demand for some kind of items in some situations is harder to forecast than for others.
7. Statistical forecasting methods have inherent limitations because they use the history of demand to project demand.
8. Statistical forecasting systems do not understand the contextual or situational factors the influenced demand in the past for that will influence it in the future.

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