A Strategic Demand Forecasting: Assessing Methodologies, Market Volatility, and Operational Efficiency
DOI:
https://doi.org/10.56532/mjbem.v3i2.71Keywords:
Demand Forecasting, Inventory Management, Production Planning, Resource Allocation, Forecast AccuracyAbstract
Demand forecasting is vital for optimizing inventory management, production planning, and resource allocation. However, organizations face challenges due to forecast inaccuracies, leading to inefficiencies, higher costs, and reduced customer satisfaction. This study analyses various forecasting methodologies and evaluates their effectiveness. Market volatility, seasonality, and changing consumer preferences contribute to discrepancies between forecasted and actual demand. The study aims to identify these challenges, evaluate techniques, assess accuracy and scalability, investigate influencing factors, and explore the implications of improved forecasting on business outcomes. Surveys were conducted with 200 industry experts across different sectors, with data analysed using SPSS, focusing on operational efficiency, market adaptability, implementation cost, ease of integration, forecast reliability, and scalability. Key findings reveal diverse participation across sectors and roles, highlighting the universal relevance of forecasting techniques. Reliability analysis shows most variables have acceptable to good reliability, with Cronbach's Alpha values of 0.767 for forecasting accuracy and 0.703 for operational efficiency. ANOVA results indicate that the model, including predictors like operational efficiency, adaptability to market changes, implementation cost, ease of integration, forecast reliability, and scalability, explains approximately 67.6% of the variance in forecasting effectiveness (Adjusted R Square = 0.676, p < 0.000). These findings emphasize the need for organizations to strategically implement forecasting techniques that are adaptable, cost-effective, and easily integrated into existing systems, to improve their forecasting capabilities and overall business performance.
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