Figure 5.
A diagram illustrating the causal relationship between product demand, sales forecast, production rate, and inventory. It shows feedback loops with various components connected by arrows.This diagram presents a flow model depicting the interconnections among several components related to product management and market dynamics. Arrows indicate the flow of influence between elements such as Product Final Demand, Sales Forecast, Ideal Production Rate of Product, and Product Inventory. The flow involves cycles where increases or decreases in one element affect others. The diagram also includes specific terms like Targeted Market Share and Actual Market Share, showing their relationships. Various arrows connect these components to illustrate how adjustments in inventory, production, and sales are interdependent, allowing users to trace the impact of changes through the entire system.

Marketing, demand, sales forecasting, production and final sales causal loop

Source: Authors’ own work

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