Making Decisions Based on Demand and Forecasting Research Paper

Making Decisions Based on Demand and Forecasting - Research Paper Example According to the research findings, it can, therefore, be said that the demand curve, one 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 equilibrium price where demand and price are all in balance. Using demand curve data, a business is able to determine which pricing strategies to employ. These strategies lead 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 forecast how much a customer may buy and how much of the product will be bought at a given period of time. An organization will shift the production of various products and services based on supply and demand of these particular commodities. Managers should make critical decisions to ensure that they produce enough goods and services to ensure that demand does not ov erriding 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 change 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.