INFLUENCE OF PRODUCT LIFE SDEVEN STEPS IN

CYCLE FORECASTING
The initial stages of introduction and growth necessitate forecasts of
Identify the purpose of the forecast.
extended duration compared to the stages of maturity and decline. As a Choose the items for prediction.
product evolves through its life cycle, forecasting becomes instrumental in Establish the timeframe for the forecast.
projecting its trajectory and anticipating future developments. Select appropriate forecasting methods.
Staffing levels.
Inventory levels.
Collect necessary data, generate the forecast.
Factory capacity. Verify and put the results into practice.

DISTINGUISHING
TYPES OF PRECAST DIFFERENCES
Economic forecast
Forecasting Medium/ long range forecasts deal with more comprehensive
issues and suport management.

Technological forecast The process of anticipating a forthcoming Decisions concerning the planning of products, facilities, and
occurrence serves as the fundamental basis procedures.
Demand forecas for all business decisions. Short- term forecasting usually employs diferent methodologies
than longer- term forecasting.
Production
Short-term forecasts generally exhibit greater accuracy
Inventory
compared to forecasts made for longer-term periods.
Personnel
Facilities

STRATEGIC IMPORTANCE OF
FORECASTING
FORECASTING
Effective management of the supply chain and strong relationships APPROACHES
with suppliers offer benefits in terms of product innovation, cost Methods based on qualitative analysis.
efficiency, and speed to market.
Quantitative methods.
Human resources encompass activities such as recruitment,
training, and the process of workforce reduction.
Capacity refers to the ability to meet demand, and shortages in
capacity can lead to unreliable delivery, customer loss, and a
decline in market share.