Demerits of barometric method :
1. In this method , the direction of change is the basis of prediction, the actual size of change cannot be measured.
2. The situations may become complicated by the fact that there may be variations in the length of the lead time between various indicators which means that the accuracy of predictions may be reduced .
3. Finding an appropriate indicator may be difficult .
Merits of barometric method :
1. It is an improvement over trend projection method .
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Merits: The barometric method of demand forecasting relies on leading economic indicators, which can provide valuable information on future trends. It is relatively simple and easy to use, making it accessible to businesses of different sizes.
Demerits: This method can be unreliable if the indicators used are not closely related to the business or if there are sudden changes in the environment that are not reflected in the indicators. It also does not provide a detailed analysis of specific factors influencing demand.