Why is Demand Forecasting Important for Business Leaders?
For executives and business leaders, accurate demand forecasting is essential for several reasons:
1. Resource Allocation: It helps leaders allocate resources efficiently, ensuring that production matches market demand. 2. Inventory Management: Accurate forecasting prevents overstocking or stockouts, both of which can be costly. 3. Financial Planning: It aids in budgeting and financial planning by providing a clear picture of expected revenue. 4. Customer Satisfaction: Meeting customer demand on time enhances customer satisfaction and loyalty.