The derived demand method of forecasting refers to the concept that the demand for a product or service is dependent on the demand for another product or service. In other words, the demand for a good or service is derived from the demand for another good or service. This method is commonly used in economics and business to understand the interdependence of various markets and industries.
In this context, the definition that applies to the derived demand method of forecasting would be:
A forecasting technique that analyzes the relationship between the demand for a product or service and the demand for another product or service, upon which it is dependent.
