The following factors are attributed to demand forecasting :

(1) Length of Forecasting: It is further split into the following subfactors:

(a) Term forecasting: The maximum span in short term forecasting is 12 month which is considered adequate for determining the sales Volume inventory control production level and the capital flow etc. 

(b) Medium-term forecasting: The span in this regard range from 1 to 2 years for ensuring disciple level operational level and the budgetary control over the expenditure etc. 

(c) Long term forecasting: This term forecasting vary from 3 to 10 years are considered to be adequate for capital investment expenditure employment requirement financial needs etc. 

(2) Level of Forecasting:

(a) Micro level forecasting: It is related to all the business conditions in the economic management which is strictly in accordance with the determined standards of industrial production, national income & expenditure. 

(b) Industry level forecasting: It is determined and established by various federation. 

(3) Classification of Products: It is essential to classify the products as the productive and consumable items. 

(4) General or specific forecasting :

(5) Problem and method of forecast: Problem and method of forecasting are different in case of old and new products.