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For each product family, they divide the total quarters in weeks to determine the average weekly sale per quarters. Then they plug in their expected demand for the five or six quarters.
The demand forecast is used around the company, because many of the decisions made based on the demand are not just used by one person, but by the whole company instead. The forecasting is used for:
• Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. In the context of capacity planning, "capacity" is the maximum amount of work that an organization is capable of completing in a given period of time...
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