Features for good demand forecasting

Features for good demand forecasting1.It is in terms of specific quantities 

2. It is undertaken in an uncertain atmosphere. 

3. A forecast is made for a specific period of time which would be sufficient to take a decision and put it into action. 

4 .It is based on historical information and the past data. 

5 .It tells us only the approximate demand for a product in the
future.

 6 .It is based on certain assumptions.

 7 .It cannot be 100% precise as it deals with future expected demand

 Demand forecasting is the activity of estimating the quantity of a product or service that consumers will purchase. Demand forecasting involves techniques including both informal methods, such as educated guesses, and quantitative methods, such as the use of historical sales data or current data from test markets. Demand forecasting may be used in making pricing decisions, in assessing future capacity requirements, or in making decisions on whether to enter a new market