Demand Changes (Forecasting)
Factors affecting demand forecasts: consumer trends, economic factors, competitor actions, seasonality, marketing.
Real World
Cadbury accurately forecast rising demand for chocolate before Christmas by analysing historical sales data and seasonal trends, allowing it to ramp up production and avoid stockouts during peak retail weeks.
Exam Focus
For 'evaluate' questions, always weigh the limitations of forecasting (e.g. unexpected economic shocks) against its benefits.
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