Question

An organization faces several internal and external risks in economic decision, such as high competition, failure of technology, labor unrest, inflation, recession, and change in government laws.Therefore, most of the business decisions of an organization are made under the conditions of risk and uncertainty.An organization can lessen the adverse effects of risks by determining the demand or sales prospects for its products and services in future. Demand forecasting is a systematic process that involves anticipating the demand for the product and services of an organization in future under a set of uncontrollable and competitive forces.

Question 01: In your opinion, explain with examples how Economic Decision analysis is important in Demand Forecasting and cost

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Note: Please no copy paste from internet plagiarism is strictly prohibited

Answer 1

It is essential for the development of business  to make appropriate strategies and use techniques . It is possible with the economic decision analysis. In this way, economic decision analysis are crucial and play important role in demand and cost forecasting of organisation.

Demand forecasting gives information about the future demand of goods related to the particular organisation and helps to organization to take decision about the start of production, decide about the cost, purchase of rew material. Economic decision analysis assist in having skills to improve and increase demand in future. Economic decision analysis is done by the external and internal decision makers to improve the demand forecasting. For example, with the economic decision what to produce , which quality to produce, by which resource to produce put impact on the demand forecasting. Good quality product at low cost can increase the demand of product in future and reduce risks of organisation.