With respect to the material we gathered we have stated 5 main advantages of demand forecast: 1. Reduces future uncertainties 2. Provides an inventory control, reduces reserves of slack resources to meet uncertain demand 3. Demand forecasting allows businesses to avoid ordering too much merchandise, which reduces its overhead costs. 4. Short- to medium-range demand forecasting gives managers information about how many workers they will need in the near future, and where their labor needs will be highest. This prevents unnecessary hiring just before periods of low demand and ensures that a business has time to put a staff in place to meet upcoming demand. 5. Over the long term, demand forecasting helps a business reshape itself and adapt to upcoming changes in its industry or market.
Although there are also disadvantages: 1. The forecast may be wrong or inaccurate. 2. Times may change, which means that past performances does not give you a 100% knowledge about the future. 3. You might get stuck with your forecast, adapting the whole process after it, even though it might be faulty.
The articles also give examples of different methods to use within demand forecast. Buyers Intention Survey (Market Research) and the Delphi Method (Expert Panel Method) are two of them. Both of these methods have advantages and disadvantages.
Diigo evaluation: Neither of us had ever used Diigo before. Although it was not to difficult to learn how to use it since we were provided with many different tutorials and helping tools. We consider it to be a very efficient knowledge-sharing tool since it is very easy to mark and share articles and texts that are interesting. Diigo provides a possibility to work collaboratory even though you are in different places around the world. With the feature of groups it is easy to communicate and share information with eachother. We can at this early point not see any disadvantages with it.
started by Pelle Axelsson on 30 Mar 12
1. Reduces future uncertainties
2. Provides an inventory control, reduces reserves of slack resources to meet uncertain demand
3. Demand forecasting allows businesses to avoid ordering too much merchandise, which reduces its overhead costs.
4. Short- to medium-range demand forecasting gives managers information about how many workers they will need in the near future, and where their labor needs will be highest. This prevents unnecessary hiring just before periods of low demand and ensures that a business has time to put a staff in place to meet upcoming demand.
5. Over the long term, demand forecasting helps a business reshape itself and adapt to upcoming changes in its industry or market.
Although there are also disadvantages:
1. The forecast may be wrong or inaccurate.
2. Times may change, which means that past performances does not give you a 100% knowledge about the future.
3. You might get stuck with your forecast, adapting the whole process after it, even though it might be faulty.
The articles also give examples of different methods to use within demand forecast. Buyers Intention Survey (Market Research) and the Delphi Method (Expert Panel Method) are two of them. Both of these methods have advantages and disadvantages.
Diigo evaluation:
Neither of us had ever used Diigo before. Although it was not to difficult to learn how to use it since we were provided with many different tutorials and helping tools. We consider it to be a very efficient knowledge-sharing tool since it is very easy to mark and share articles and texts that are interesting. Diigo provides a possibility to work collaboratory even though you are in different places around the world. With the feature of groups it is easy to communicate and share information with eachother. We can at this early point not see any disadvantages with it.