Reference no: EM133694059

Question: Demand forecasting is understanding customer demands to make adequate cash flow, capacity planning, or supply chain operations decisions. The forecasting technique of internal demand forecasting allows businesses to prepare for significant or future demands. For example, my organization is a well-known food chain supplier, so internal demand forecasting can help me order the appropriate food items for inventory to ensure the demand is met on the event day. Another forecasting tactic that I would use is passive demand forecasting; rather than statistics or analysis, I would be able to use data from previous sale dates and predict the outcome of the future event; this is both a practical and much easier way to meet demands. When choosing the best approach for forecasting techniques, one must consider the aspects of flexibility and adaptability; these two go hand in hand as they allow for changes to be accommodated efficiently. Another approach is testing the data and conducting a proficient analysis to help better understand the significance of the results.