Question

Describe a company where forecasting is not essential. Why isn't it important to that type of business?

Answer 1

The company where forecasting is not that important and is essentially not required is the SALT MANUFACTURING COMPANY OF TATA I.e. TATA is a company which manufactures many goods, of which the salt manufacturing company of TATA does not require forecasting for various reasons such as:
•   The demand for salt is more or less constant and is growing at a constant pace and hence forecasting is not necessary as such.
•   The long term profit making wing of TATA is the automobile section and not the Salt manufacturing wing.
•   They have devised a certain percentage of growth from their experience and hence only that much extra is manufactured.
•   There would be no major tax changes or import and export prices from the government side on such an essential thing I.e. salt and hence no forecasting is actually needed.
•   The customer satisfaction is constant and there is nothing much that can be done to improve the customer satisfaction and hence this business does not require forecasting.