Making Decisions Based on Demand and Forecasting Research Paper

Making Decisions Based on Demand and Forecasting - Research Paper ExampleAccording to the research findings, it can, therefore, be said that the demand curve, mavin of the lines on a supply and demand graph represents various levels of consumer demand for a product at different prices. The curve crosses the supply curve representing the vestibular sense price where demand and price ar all in balance. Using demand curve data, a business is able to determine which pricing strategies to employ. These strategies occupy to income estimates and set objectives which indicate the importance of pricing in an organization and its ability to be profitable. Based on pricing managers of Dommino pizza are able to see how much a customer may buy and how much of the product get out be bought at a given period of time. An organization will shift the production of various products and serve based on supply and demand of these particular commodities. Managers should make critical decisions to en sure that they produce enough goods and services to ensure that demand does not overriding because if this happens then there will not exist a market due to overproduction. Dommino pizza should, therefore, ensure that it produces a reasonable number of pizzas that are enough for all its customers according to their demands. Thirdly, another important decision for a company is the distribution of goods. Channels of distribution are highly affected by demand whereby, where the demand for goods is high then managers should improvise shorter, more direct and economical channels. In cases of low demand for goods, managers should exchange the way they distribute their goods to those particular markets. Finally, demand affects how a company employs its skilled labor force. The demand for products dictates the demand for particular skill or position in the labor market. The relative cost of hiring skilled personnel affects who a company is willing to hire.