Answer to Question #159467 in Economics for Noor ul Hira

Question

A reputable FMCG company is holding its Annual Sales Conference on January 30th 2021 for its New Year sales plan. The company is interested in launching new product beside its existing product lines. The new product will be novel in the history of the company. (Marks 06)

1. Discuss the techniques of forecasting that will be used by the company for its existing and new products.

2. Explain specific type and reason for using those techniques. Also identify the limitations of these techniques. please provide the answer according to the Supply Chain.

Answer 1

1. The most common forecasting method is to use sales volumes of existing products to forecast demand for a new one.

2. This method is particularly useful if the new product is a variation on an existing one involving, for example, a different colour, size or flavour.