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

Recently I had planned to purchase a smart phone from one of the global brands and the product was promoted quite effectively by the organization as it was a flagship product of the brand and hence they tried their best to market the same and launched the product online and its sale was also exclusively online from an ecommerce giant. The flash sale was about to be conducted twice a week for one hour and in that one hour customers will be allowed to order a single product. It was clear that the organization had done under forecast of the product because the flash would finish within few minutes from the start and because of this many customers were unable to get the product.

This initially was fine because customers thought that the product has huge demand but with time they got impatient and went for other brands or products and the pressure was also increasing on the manufacturer as well as on the retailer and the whole supply chain as well because customers are waiting for the product desperately and when they do not get it they get impotent and the competitors of the organization may benefit hence under forecast is something that may silently affect the organization negatively and make things worse for them.

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