Component of demand forecast system .9. Market research operations to get relevant and reliable information about market trends.
1. A data processing and analysis system to predict Kates.
(i) and evaluate sales performance in various stages
(ii) Proper coordination of the steps and
(ii) And then keep the findings before top management to make a final decision. Objectives of demand forecast
1. Short-term purpose-
(1) Regular supply of material-by-conductors- In the country with the desired amount of production based on demand forecasts, the requirements of raw materials required in the future may be evaluated so as to ensure regular and constant supply of materials as well as to control the size of inventory at the economic level.
(ii) Maximum use of machines- OP-Production can be employed thus that machines can be utilized up to their maximum capacity.
(iii) Regular availability of workers – Proper arrangement of unskilled workers can be made to meet efficient and production programme.
(b) Price policy making-demand forecast management enables some reasonable pricing mechanisms to prepare certain pricing mechanisms so that price levels don’t fluctuate too much in the duration of deceleration or inflation.
(c) Proper control of sales- Demand forecasts are calculated by zone and then for different areas the sales targets are fixed accordingly. It later becomes the basis of evaluating sales performance.
(d) System of Finance- Based on D- Mand forecast, one can determine the financial requirements of the enterprise to produce the desired output, this can reduce the cost of obtaining finance.
2. Long-term purpose
If a demand forecast period is more than one year then it is called a long-term forecast. The main objectives of such forecasts are the following:
(b) Labor Requirements- Expenditure on labor is one of the most important components in production cost.
Reliable and accurate demand forecasting can help management assess proper labor requirements. This can be ensured the best labor facility and there will be no barrier to the production process.
(c) Production Plan- Long-term production plan management can help arrange long-term finance on reasonable terms and conditions.
Long-term sales analysis is more important than short-term sales. Long-term sales forecasting helps management make some important policy decisions and it can be very difficult or expensive to improve any error that has taken place.
Thus the overall success of an enterprise mainly depends on the quality and reliability of the sales forecasting mechanism.