The reasons for businesses to do forecasting , with relevant examples. Concept Introduction: Forecasting methods are employed by companies to predict their customer demand based on a combination of historical data and market trends.

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Answer 1

Question

Chapter 8, Problem 1DQ

Summary Introduction

Interpretation: The reasons for businesses to do forecasting, with relevant examples.

Concept Introduction:Forecasting methods are employed by companies to predict their customer demand based on a combination of historical data and market trends.

Expert Solution & Answer

Explanation of Solution

Forecasting is carried out by comparing historical data, future trends, and current status for predicting future customer demands. Accurate forecasting brings a lot of benefits to organizations.

Reasons for forecasting with relevant examples:

Inventory:Unless the right quantity is stocked for the demand, companies might fail to meet the customer requirements and may lose potential sales. And if the stock quantity is much higher than the actual demand, there will a lot of additional costs in storing it, insurance, and risk of damage, and so on. Thus, forecasting is important to have the optimal quantity of inventory.
Resource:Planning of resources is important as the optimal number of staff are present during demand fluctuation. For example, if the demand is not forecasted then the resources available will not be available to handle seasonal fluctuations or peaks in demand like during Christmas sales.
Production:Companies have a lot of machines and processes involved in their production. To optimize their schedule so that their efficiency and utilization is high, companies need to forecast the demand accurately.

If production is not scheduled as per demand, then it might delay the delivery of the product to the customer. Also, if demand is forecasted to become low for a product, the company will lose money by running the production capacity to maximum and stocking a lot of finished products.

So, the demand from customers will not be constant. And the fluctuation in their demand must be forecasted for planning the inventory, production scheduling, and resource plan.

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Answer 2

Question

Chapter 8, Problem 1DQ

Summary Introduction

Interpretation: The reasons for businesses to do forecasting, with relevant examples.

Concept Introduction:Forecasting methods are employed by companies to predict their customer demand based on a combination of historical data and market trends.

Expert Solution & Answer

Explanation of Solution

Forecasting is carried out by comparing historical data, future trends, and current status for predicting future customer demands. Accurate forecasting brings a lot of benefits to organizations.

Reasons for forecasting with relevant examples:

Inventory:Unless the right quantity is stocked for the demand, companies might fail to meet the customer requirements and may lose potential sales. And if the stock quantity is much higher than the actual demand, there will a lot of additional costs in storing it, insurance, and risk of damage, and so on. Thus, forecasting is important to have the optimal quantity of inventory.
Resource:Planning of resources is important as the optimal number of staff are present during demand fluctuation. For example, if the demand is not forecasted then the resources available will not be available to handle seasonal fluctuations or peaks in demand like during Christmas sales.
Production:Companies have a lot of machines and processes involved in their production. To optimize their schedule so that their efficiency and utilization is high, companies need to forecast the demand accurately.

If production is not scheduled as per demand, then it might delay the delivery of the product to the customer. Also, if demand is forecasted to become low for a product, the company will lose money by running the production capacity to maximum and stocking a lot of finished products.

So, the demand from customers will not be constant. And the fluctuation in their demand must be forecasted for planning the inventory, production scheduling, and resource plan.

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Answer 3

Question

Chapter 8, Problem 1DQ

Summary Introduction

Interpretation: The reasons for businesses to do forecasting, with relevant examples.

Concept Introduction:Forecasting methods are employed by companies to predict their customer demand based on a combination of historical data and market trends.

Expert Solution & Answer

Explanation of Solution

Forecasting is carried out by comparing historical data, future trends, and current status for predicting future customer demands. Accurate forecasting brings a lot of benefits to organizations.

Reasons for forecasting with relevant examples:

Inventory:Unless the right quantity is stocked for the demand, companies might fail to meet the customer requirements and may lose potential sales. And if the stock quantity is much higher than the actual demand, there will a lot of additional costs in storing it, insurance, and risk of damage, and so on. Thus, forecasting is important to have the optimal quantity of inventory.
Resource:Planning of resources is important as the optimal number of staff are present during demand fluctuation. For example, if the demand is not forecasted then the resources available will not be available to handle seasonal fluctuations or peaks in demand like during Christmas sales.
Production:Companies have a lot of machines and processes involved in their production. To optimize their schedule so that their efficiency and utilization is high, companies need to forecast the demand accurately.

If production is not scheduled as per demand, then it might delay the delivery of the product to the customer. Also, if demand is forecasted to become low for a product, the company will lose money by running the production capacity to maximum and stocking a lot of finished products.

So, the demand from customers will not be constant. And the fluctuation in their demand must be forecasted for planning the inventory, production scheduling, and resource plan.

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Answer 4

Question

Chapter 8, Problem 1DQ

Summary Introduction

Interpretation: The reasons for businesses to do forecasting, with relevant examples.

Concept Introduction:Forecasting methods are employed by companies to predict their customer demand based on a combination of historical data and market trends.

Expert Solution & Answer

Explanation of Solution

Forecasting is carried out by comparing historical data, future trends, and current status for predicting future customer demands. Accurate forecasting brings a lot of benefits to organizations.

Reasons for forecasting with relevant examples:

Inventory:Unless the right quantity is stocked for the demand, companies might fail to meet the customer requirements and may lose potential sales. And if the stock quantity is much higher than the actual demand, there will a lot of additional costs in storing it, insurance, and risk of damage, and so on. Thus, forecasting is important to have the optimal quantity of inventory.
Resource:Planning of resources is important as the optimal number of staff are present during demand fluctuation. For example, if the demand is not forecasted then the resources available will not be available to handle seasonal fluctuations or peaks in demand like during Christmas sales.
Production:Companies have a lot of machines and processes involved in their production. To optimize their schedule so that their efficiency and utilization is high, companies need to forecast the demand accurately.

If production is not scheduled as per demand, then it might delay the delivery of the product to the customer. Also, if demand is forecasted to become low for a product, the company will lose money by running the production capacity to maximum and stocking a lot of finished products.

So, the demand from customers will not be constant. And the fluctuation in their demand must be forecasted for planning the inventory, production scheduling, and resource plan.

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Answer 5

Chapter 8, Problem 1DQ

Summary Introduction

Interpretation: The reasons for businesses to do forecasting, with relevant examples.

Concept Introduction:Forecasting methods are employed by companies to predict their customer demand based on a combination of historical data and market trends.

Expert Solution & Answer

Explanation of Solution

Forecasting is carried out by comparing historical data, future trends, and current status for predicting future customer demands. Accurate forecasting brings a lot of benefits to organizations.

Reasons for forecasting with relevant examples:

Inventory:Unless the right quantity is stocked for the demand, companies might fail to meet the customer requirements and may lose potential sales. And if the stock quantity is much higher than the actual demand, there will a lot of additional costs in storing it, insurance, and risk of damage, and so on. Thus, forecasting is important to have the optimal quantity of inventory.
Resource:Planning of resources is important as the optimal number of staff are present during demand fluctuation. For example, if the demand is not forecasted then the resources available will not be available to handle seasonal fluctuations or peaks in demand like during Christmas sales.
Production:Companies have a lot of machines and processes involved in their production. To optimize their schedule so that their efficiency and utilization is high, companies need to forecast the demand accurately.

If production is not scheduled as per demand, then it might delay the delivery of the product to the customer. Also, if demand is forecasted to become low for a product, the company will lose money by running the production capacity to maximum and stocking a lot of finished products.

So, the demand from customers will not be constant. And the fluctuation in their demand must be forecasted for planning the inventory, production scheduling, and resource plan.

Answer 6

Chapter 8, Problem 1DQ

Summary Introduction

Interpretation: The reasons for businesses to do forecasting, with relevant examples.

Concept Introduction:Forecasting methods are employed by companies to predict their customer demand based on a combination of historical data and market trends.

Expert Solution & Answer

Explanation of Solution

Forecasting is carried out by comparing historical data, future trends, and current status for predicting future customer demands. Accurate forecasting brings a lot of benefits to organizations.

Reasons for forecasting with relevant examples:

Inventory:Unless the right quantity is stocked for the demand, companies might fail to meet the customer requirements and may lose potential sales. And if the stock quantity is much higher than the actual demand, there will a lot of additional costs in storing it, insurance, and risk of damage, and so on. Thus, forecasting is important to have the optimal quantity of inventory.
Resource:Planning of resources is important as the optimal number of staff are present during demand fluctuation. For example, if the demand is not forecasted then the resources available will not be available to handle seasonal fluctuations or peaks in demand like during Christmas sales.
Production:Companies have a lot of machines and processes involved in their production. To optimize their schedule so that their efficiency and utilization is high, companies need to forecast the demand accurately.

If production is not scheduled as per demand, then it might delay the delivery of the product to the customer. Also, if demand is forecasted to become low for a product, the company will lose money by running the production capacity to maximum and stocking a lot of finished products.

So, the demand from customers will not be constant. And the fluctuation in their demand must be forecasted for planning the inventory, production scheduling, and resource plan.

Answer 7

Chapter 8, Problem 1DQ

Summary Introduction

Interpretation: The reasons for businesses to do forecasting, with relevant examples.

Concept Introduction:Forecasting methods are employed by companies to predict their customer demand based on a combination of historical data and market trends.

Answer 8

Expert Solution & Answer

Explanation of Solution

Forecasting is carried out by comparing historical data, future trends, and current status for predicting future customer demands. Accurate forecasting brings a lot of benefits to organizations.

Reasons for forecasting with relevant examples:

Inventory:Unless the right quantity is stocked for the demand, companies might fail to meet the customer requirements and may lose potential sales. And if the stock quantity is much higher than the actual demand, there will a lot of additional costs in storing it, insurance, and risk of damage, and so on. Thus, forecasting is important to have the optimal quantity of inventory.
Resource:Planning of resources is important as the optimal number of staff are present during demand fluctuation. For example, if the demand is not forecasted then the resources available will not be available to handle seasonal fluctuations or peaks in demand like during Christmas sales.
Production:Companies have a lot of machines and processes involved in their production. To optimize their schedule so that their efficiency and utilization is high, companies need to forecast the demand accurately.

If production is not scheduled as per demand, then it might delay the delivery of the product to the customer. Also, if demand is forecasted to become low for a product, the company will lose money by running the production capacity to maximum and stocking a lot of finished products.

So, the demand from customers will not be constant. And the fluctuation in their demand must be forecasted for planning the inventory, production scheduling, and resource plan.