Answer to Question #226597 in Management for Harsh Patel

Question

Demand forecasting is an important tool for predicting the demand for an

organization’s products or services in a specified time period in the future” Enumerate any

three needs for demand forecasting and discuss the steps involved in demand forecasting.

Answer 1

Three needs for demand forecasting

a) Helps reduce risks and make efficient financial decisions

b) It is required in the allocation of resources for optimal and realistic allocation.

c) Required in strategic and operational plans

The steps involved in demand forecasting.

1. Identification of Objective.
2. Nature of Product and Market.
3. Determinants of Demand.
4. Analysis of Factors.
5. Choice of Method.
6. Testing Accuracy.