Question

Demand forecasting in an organisations plays a vital role in business organisations It provides reasonable data for the organization's capital investment and expansion decision.

a. Keeping the above statement in consideration. Discuss the various steps involved in demand forecasting

b. Discuss the various needs for demand forecasting in business organisations?

Answer 1

Answer:

a.Steps in demand forecasting are:

Identification of Objective

Nature of Product and Market

Determinants of Demand

Analysis of Factors

Choice of Method

Testing Accuracy

b.Many decisions of business depend on demand like production, sales, staff requirement, etc. Forecasting is the necessity of business at an international level as well as domestic level. Demand forecasting reduces risk related to business activities and helps it to take efficient decisions.

Explanation: