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Criteria of a Good Forecasting Method:
1. Simplicity : and Ease of Comprehension: Management must be able to understand and have confidence in the techniques used complicated mathematical and statistical techniques may be avoided.
2. Economy: Cost must be weighed against the importance of the forecast to the operation of the business. The criticism should be the economic consideration of balancing the benefits from increased accuracy against the extra cost of providing the improved forecasting.
3. Availability : Techniques should given quick results and useful information.
4. Durability: Durability of the forecasting power of a demand and function depends on reasonableness and simplicity of functions fitted.
5. Accuracy : Sales forecasting is the basis of marketing planning and therefore sales forecasts should be as much accurate as possible.
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