The process of forecasting accurately is important to profitability. Producing too few items of a high-demand product will result in frustrated customers and likely result in potential customers going to competitors; too many items produced will likely result in inventory that cannot be sold.

Imagine you are bringing an innovative new product to market. Select a product and write a brief description of your product, including its primary purpose. What activities will you use to make sure your production levels match demand as closely as possible?

Think about:

1. What methods do you think you would employ?
2. What markets would you target for the product you have created?
3. Is your product a seasonal product?