Question

If demand forecasts predict an output level of between 900 and 1100 in the next decade, what would be your long-run strategy to optimize the resources of your company?

Answer 1

Meaning of demand forcasting- in simple words it is the process of predicting future sales on the basis of previous sales record or data.it is used to inform business decisions related to plsnning,warehousing and customers expectations.it helps the business to redict future demand and revenue.it is valuable for all kinds of businessess.

Following are the stepsfor long run strategy to optimize the resources ..they are as follows

1● Set objectives..

The first and foremost strategy in long run strategy is to set goal.onjectives must be very clear.it will help in achieving and optimim utilisation of available resources.if objectives are clear ,it helps in decision making and understanding consumer behaviour.

2- Collect and record data-

To optimize the resources one should have the full knowledge related to its previous demand of products and on the basis of which future forcast can be done.previous records should be made as it helps in knowing the trend projection on more granule level.to ensure reliability and optimize resource the company's data must be properly prepared.

3● Measure and analyse data-

Whatever the data is available it should be analysed and measured properly as to ensure the optimum ultilisation of available resorces.the previous data must be compared as to know the drawbacks if any and helps in future forcast.measuring the data helps in knowing demandof different products at different time.

4● Budget accordingly-

Long run strategy budget has a significant place.the proper allocation of available funds has to be done in proper departments as it helps to meet the  future demand.the budget should allocate tge funds according to the objectives.

To summarize ,long run strategy to optimize the resources...a company must keep the following points to ensure to meet the future demand as it helps to identify the annual pattern ,production capacity .