Need for Demand Forecasting

Business managers have to make plans for future levels of production. It is required to make necessary arrangements for the purchase of raw materials, recruiting and training the required skilled labor and for arranging the required funds for production etc. forecasting demand means estimation of future demand. Good forecast of future demand is a necessary pre-condition for proper planning of future level of production. The need for demand forecasting is briefly explained below. It is on the basis of production plans firms make necessary arrangements for the purchase of raw…

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