Show the long term goals - demand forecast, Managerial Economics

Assignment Help:

Q. Show the Long Term Goals - Demand forecast?

Long Term Goals:  If the demand forecast period is more than a year, in that scenario it's termed as long term forecast. Following are the key objectives of such forecasts:

To settle on the production capacity: Long term decisions are entangled with capacity variations by discarding or adding capacity in the form of capital assets - manufacturing plants, new technology implementation etc. Size of the organisation must such that output matches with the sales requirements. Organisations which are very large or small in size may not be in the financial interest of the company. Inadequate capability can hasten declining delivery performance, unnecessary rise in work-in-process and disturb sales personnel and those in production unit. However, surplus capacity can be expensive and pointless. Incompetence to appropriately deal with capacity can be an obstacle to obtaining the best possible performance. By examining the demand pattern for the product and the forecasts for the future, company can prepare for a company's output of desired capacity.


Related Discussions:- Show the long term goals - demand forecast

Type of economic system, Question 1: (a) Briefly explain and distingui...

Question 1: (a) Briefly explain and distinguish between a centrally planned, laissez-faire and mixed economy. (b) According to you, which kind of economic system is most d

Factors for wage differential within the same occupation, FACTORS RESPONSIB...

FACTORS RESPONSIBLE FOR WAGE DIFFERENTIALS WITHIN THE SAME OCCUPATION i.     Differences in the environment:   For example a doctor sent to North Eastern Province must be pai

Identity economics, McDonalds has been operating in many Asian countries su...

McDonalds has been operating in many Asian countries such as China, Singapore and Japan. However, McDonalds has yet to open its ?rst restaurant in Vietnam, a country with over 80 m

Structure of population and supply of labour, THE STRUCTURE OF POPULATION A...

THE STRUCTURE OF POPULATION AND SUPPLY OF LABOUR The structure (also called age distribution or composition) of population, or the number of people in the different age groups

Structural unemployment - reason for protection, Structural Unemployment ...

Structural Unemployment The decline of the highly localized industry due to international trade causes great problems of regional (structural) unemployment.  If it would take

Exchange rate, Assume a floating exchange rate system. The Fed pursues an e...

Assume a floating exchange rate system. The Fed pursues an expansionary monetary policy. Draw how this would look on the graphs below. Mark the new equilibriums. Complete the table

Characteristics of the three stages of diminishing returns, CHARACTERISTICS...

CHARACTERISTICS OF THE THREE STAGES   Stage I Here the Total Physical Product, Average Physical Product and Marginal Physical Product are all increasing.  However MPP

Illustrate about pecuniary economies, Q. Illustrate about Pecuniary economi...

Q. Illustrate about Pecuniary economies? Pecuniary economies (which is monetary economies) are those economies accrued by the firm from paying lower prices for the factors used

Essay, Help with writing papers and analysis for case "The Ready-To-Eat Bre...

Help with writing papers and analysis for case "The Ready-To-Eat Breakfast Cereal Industry" in 1994

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd