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Demand forecast week 2

Demand forecast week 2

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DEMAND FORECAST 2 The Most Important Elements When Creating a Demand Forecast Demand forecasting is said to be appropriately and accurately done when the actual demand is in tune with the forecasted demand. To make that happen, several factors and elements are to be kept in mind while projecting the demand for any available product/ service. The various elements are as follows: Accuracy The foremost element is the accuracy of the demand that is to be forecasted. It should be based on how accurately one determines the customers that are going to avail a product/ service. The forecasts should be made keeping in mind the current, real figures to be as close to reality as possible in the coming future. The base of the forecast should lie in the figures in front so that projections can be made at the realistic front keeping in mind the past trend and behavior of the demand. Also, the forecast should be quantifiable and not just attributable, that is to say that merely saying that the demand shall increase, or decrease won’t suffice the purpose but quantifying as to what extent the demand shall increase or decrease shall always be held as important. Durability The durability of demand forecast means that the forecasts made should be able to cater to a comparatively longer period as forecasting requires a great amount of money, time and effort to be invested in and doing that over and over again is a mere waste of the critical resources available with the organization. Flexibili ...
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