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Assertion (A): Demand forecasting reduces risk related to business activities.
Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.
Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.
- a)Both (A) and (R) are correct and (R) is the correct explanation of (A).
- b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).
- c)(A) is correct, but (R) is not correct.
- d)(A) is wrong, but (R) is correct.
Correct answer is option 'A'. Can you explain this answer?
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Assertion (A): Demand forecasting reduces risk related to business act...
The correct answer is Both (A) and (R) are correct and (R) is the correct explanation of (A).
Demand Forecasting:
- Demand forecasting is a technique for the estimation of probable demand for a product or service in the future.
- It is based on the analysis of past demand for that product or service in the present market condition.
- Demand forecasting should be done on a scientific basis and facts and events related to forecasting should be considered.
Key Points
- Demand plays a vital role in the decision-making of a business.
- In competitive market conditions, there is a need to take the correct decisions and make planning for future events related to business like a sale, production, etc.
- The effectiveness of a decision taken by business managers depends upon the accuracy of the decision taken by them.
- Demand forecasting reduces risk related to business activities and helps it to take efficient decisions.
- Thus Assertion (A) is correct.
- Good forecast helps in appropriate production planning, process selection, capacity planning, facility layout planning, inventory management, etc.
- Thus Reason (R) is also correct and (R) is the correct explanation of (A).
Hence, the correct answer is Both (A) and (R) are correct and (R) is the correct explanation of (A).
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Assertion (A): Demand forecasting reduces risk related to business act...
Demand forecasting reduces risk related to business activities:
Demand forecasting is an important process that helps businesses anticipate the future demand for their products or services. It involves analyzing historical data, market trends, customer behavior, and other relevant factors to estimate future demand. Here is a detailed explanation of why demand forecasting reduces risk related to business activities:
1. Production Planning:
- Demand forecasting plays a crucial role in production planning.
- By accurately forecasting the demand, businesses can plan their production activities accordingly.
- This helps in avoiding underproduction or overproduction, which can result in financial losses.
- By aligning production with demand, businesses can optimize their resources and minimize the risk of excess inventory or stockouts.
2. Capacity Planning:
- Capacity planning is the process of determining the optimal capacity of resources required to meet the anticipated demand.
- Demand forecasting provides valuable insights into future demand patterns, which can aid in capacity planning.
- By understanding the expected demand, businesses can make informed decisions regarding the capacity of their production facilities, workforce, and other resources.
- This helps in avoiding underutilization or overutilization of resources, reducing operational risks and costs.
3. Layout Planning:
- Demand forecasting also assists in layout planning, which involves designing the layout of production facilities, warehouses, and distribution centers.
- By accurately predicting demand, businesses can determine the optimal layout to ensure efficient material flow and minimize handling costs.
- This reduces the risk of inefficient operations, delays in production, and higher transportation costs.
4. Inventory Management:
- Demand forecasting is essential for effective inventory management.
- It helps businesses determine the appropriate level of inventory to meet customer demand.
- By having the right amount of inventory, businesses can avoid stockouts and lost sales, as well as minimize holding costs and the risk of obsolescence.
Conclusion:
- Demand forecasting is a valuable tool that helps businesses reduce the risks associated with their activities.
- By providing insights into future demand patterns, it enables businesses to plan their production, capacity, layout, and inventory effectively.
- This optimization minimizes operational risks, reduces costs, and improves overall business performance.
Demand forecasting is an important process that helps businesses anticipate the future demand for their products or services. It involves analyzing historical data, market trends, customer behavior, and other relevant factors to estimate future demand. Here is a detailed explanation of why demand forecasting reduces risk related to business activities:
1. Production Planning:
- Demand forecasting plays a crucial role in production planning.
- By accurately forecasting the demand, businesses can plan their production activities accordingly.
- This helps in avoiding underproduction or overproduction, which can result in financial losses.
- By aligning production with demand, businesses can optimize their resources and minimize the risk of excess inventory or stockouts.
2. Capacity Planning:
- Capacity planning is the process of determining the optimal capacity of resources required to meet the anticipated demand.
- Demand forecasting provides valuable insights into future demand patterns, which can aid in capacity planning.
- By understanding the expected demand, businesses can make informed decisions regarding the capacity of their production facilities, workforce, and other resources.
- This helps in avoiding underutilization or overutilization of resources, reducing operational risks and costs.
3. Layout Planning:
- Demand forecasting also assists in layout planning, which involves designing the layout of production facilities, warehouses, and distribution centers.
- By accurately predicting demand, businesses can determine the optimal layout to ensure efficient material flow and minimize handling costs.
- This reduces the risk of inefficient operations, delays in production, and higher transportation costs.
4. Inventory Management:
- Demand forecasting is essential for effective inventory management.
- It helps businesses determine the appropriate level of inventory to meet customer demand.
- By having the right amount of inventory, businesses can avoid stockouts and lost sales, as well as minimize holding costs and the risk of obsolescence.
Conclusion:
- Demand forecasting is a valuable tool that helps businesses reduce the risks associated with their activities.
- By providing insights into future demand patterns, it enables businesses to plan their production, capacity, layout, and inventory effectively.
- This optimization minimizes operational risks, reduces costs, and improves overall business performance.
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Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer?
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Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer?.
Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UGC NET.
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Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Assertion (A): Demand forecasting reduces risk related to business activities.Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.a)Both (A) and (R) are correct and (R) is the correct explanation of (A).b)Both (A) and (R) are correct and (R) is not the correct explanation of (A).c)(A) is correct, but (R) is not correct.d)(A) is wrong, but (R) is correct.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice UGC NET tests.
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