Demand, demand forecasting, and supply : case company X

Abstract

The fundamental purpose of the thesis is to find a suitable demand forecasting technique for the case company. The goal is to collect, analyze, and present data that helps an organization make decisive tactical decisions in production planning, marketing, and forecasting product demand. A qualitative research method is used for study. Demand refers to a consumer's willingness to purchase products and be able to pay a specific price for them. Demand forecasting is the process of estimating the number of products that customers will demand over time. In contrast, the total amount of a given product or service provided to consumers at a stated price over time is known as supply.

The commissioner of this thesis, company 'X', is a food factory with a wealth of experience in the food industry. The interviews conducted with the employees from sales and product forecasts in February and March 2024 aimed to understand the process and methods involved in demand forecasting, the challenges and opportunities faced, and the relationship between demand and supply of the products. The research also highlights the significant role of various factors in affecting demand forecasting, a testament to the company's expertise and understanding of the industry.

Different reading materials related to demand, demand forecasting, and supply are meticulously studied for conceptual evaluations. Interviews are conducted to collect comprehensive answers and data. The collected data are then meticulously analysed and summarized. Lastly, opportunities and challenges the forecasters face during the demand forecasting process are deeply explored, and a thorough comparison of various demand forecasting techniques with different business situations is carried out to provide them with suitable demand forecasting techniques and more suggestions to improve the process for better accuracy.