Session 2 Milestone Management Term Paper Research (Term Paper Sample)
THE CLIENT NEEDED A TERM PAPER DESCRIBING THE FEASIBILITY OF "gRANDMAS APPLE BUTTER." sHE REQUIRED INFORMATION ON THE VARIOUS TOPICS COVERED IN THE PAPER. tHE FORMAT REQUESTED WAS APA6source..
Session 2 Milestone
DateObjectives for Demand Forecasting
Contemporary society has made businesses to be faced with a lot of risk and uncertainty. The current decade has seen most markets transform and become more dynamic, owing to the influence of internal and external factors. Demand forecasting determines the demand prospects of a businesses' products under some market forces and helps a business lessen the adverse effects of risks and uncertainties (Prachi, 2018). “Grandma’s Apple Butter” faces competition from similar goods from other companies and goods that can act as alternatives to butter. Demand forecasting offers the company with a sound strategy to drive its sales.
The objectives of demand forecasting are numerous. Foremost, demand forecasting allows the formulation of a good production policy that alleviates short supply or over-production (Prachi, 2018). Also, insight into the production policy informs the sales and price policy of “Grandma’s Apple Butter.” Demand forecasting allows a company to know future economic conditions, which is essential in directing its purchase of raw materials. Besides, demand forecasting informs the financial requirements of the company. Demand forecasting also allows companies to set sales targets and establish controls and incentives to govern product sales.
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