Factors influencing demand forecasting include historical sales data, market trends, consumer behavior, competitor actions, economic conditions, seasonality, and external factors such as natural disasters or public health crises.
Some common issues with demand forecasting include:
1. Inaccurate historical data: If past sales data is not reliable or if there are significant fluctuations in sales trends, it can lead to inaccurate forecasts.
2. External factors: Unforeseen events such as political instability, changes in regulations, or natural disasters can disrupt demand forecasting.
3. Seasonality: Fluctuations in demand based on seasons or holidays can make it challenging to predict future sales accurately.
4. Limited data: Limited data on new products, markets, or changing consumer preferences can make it difficult to forecast demand accurately.
5. Competitor actions: Changes in competitor pricing, product offerings, or marketing strategies can impact demand forecasting.
6. Economic conditions: Economic downturns or recessions can lead to shifts in consumer spending behavior, making it challenging to forecast demand.
7. Technological advancements: Rapid advances in technology can lead to changing customer preferences and behaviors, which can affect demand forecasting.
8. Supply chain disruptions: Issues in the supply chain, such as delays or shortages of raw materials, can impact production and demand forecasting.
What are the factors influencing demand forecasting? List out the most common issues with demand forecasting
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