Please describe a scenario that you have encountered recently as a consumer wher

Question

Please describe a scenario that you have encountered recently as a consumer where a business has either under forecast or over forecast demand for a product that you were planning to purchase. You will generally notice under forecasting if the product is out of stock or over forecasting if there is excess inventory for the item. Please describe the implications to the retailer, manufacturer, and broader supply chain. You can present your response through the lens of your own discipline (accounting, marketing, etc.) if you wish.

Explanation / Answer

The company Xiaomi released its smart TV in India last month and according to me, it is one of the coolest and smartest television I have ever seen. The pricing of the TV is also very competitive and it is definitely a value for money. But the company failed to forecast the demand and they released very limited number of products in the market. The products available online were sold out within no time after they went live online for sale. The retailer would have made huge profits from this sale but still, it is a loss for them when it comes to the product demand in the market. The e-commerce company Flipkart could have sold 10000 more units of television of the manufacturer had manufactured for the Indian market. The retailer now has to answer a lot of customers calling them every day asking for the next set of televisions for sale on their website. They need to discontinue their marketing activities for that particular television after they are sold out as well. For the manufacturer, it is a great news the products were sold out in no time but they need to think about upscaling their manufacturing facility and manufacture in large numbers to meet the customer demand. The company will also need to answer the retailers who will be requesting them to send more units for sale as soon as possible. The supply chain will have a break in the middle and then they rely on the manufacturer and the retailer to continue with their business. They will not have any pressure but when the company manufactures in large quantity, they need to streamline their process to make sure that the retails have the good on time. Both the company and the manufacturer will be happy if the supply chain is very efficient keeping the market demand in mind. The retailer can sell more and this will result in increased revenue for the manufacturer and also the supply chain department.

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