Demand forecasting in chemical industry

Abstract

Demand forecasting is one of the key business processes, but its effective management in the chemical industry has not been sufficiently resolved. That is why the given area became the subject of primary quantitative research in Czech chemical companies. The aim was to find out what factors influencing demand are taken into account, what sources of information are used as inputs and what methods are used in forecasting. It was found that businesses most often consider the product price, its modification, and the seasonality of sales. Therefore, they use historical sales as the main input data, but they do not process these data with an adequate statistical forecasting method. The predominant forecasting method is Sales Force Composite. Improvements in demand forecasting in chemical industry enterprises should therefore focus on wider use of sophisticated statistical methods to make forecasts more accurate.