04__Demand_in_Business_Forecasting

04__Demand_in_Business_Forecasting - Lecture 4 Demand in...

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Lecture 4 Demand in Business Forecasting Application of the law of demand is not simple or we would not be here. In a highly competitive world, successful application of the law of demand can have a significant impact on profits.
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Why Demand Is Not Easy to Measure Changes in the design of products and entry of new products mean limited lifecycles. Such changes make forecasting demand more difficult because you use data from previous products and time periods. Expanding business to new markets means new demographics (customer base), facing new competitors, different seasonal factors, packaging requirements, and distributional channels create mini-markets within a product market. Constant change in markets means changes in demand.
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Accurate Measures Difficult Difficulty in interpretation of historical data: Sales, orders, shipments and invoices are historical data that can cause confusion. This may be innocent; evidence of theft; evidence of bad record keeping. The numbers rarely match up. Besides trying to measure demand; an opportunity to try to understand company data accuracy.
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This note was uploaded on 12/21/2010 for the course BUSA 5311 taught by Professor Miners during the Fall '07 term at UT Arlington.

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04__Demand_in_Business_Forecasting - Lecture 4 Demand in...

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