What is the demand schedule?
Demand schedule is a table type that helps identify the amount of the product that is likely to be required at a specified price. Tables of this type help manufacturers have some idea how many units to produce, due to the current market price for good or service. At the same time, the data found in the table can provide valuable information on what type of change in demand can be adequately expected if consumers are valid or down.
The idea of the demand schedule is that the price has an impact on the consumption of the product. This impact often involves the consideration of factors, such as the current state of the economy, the unemployment rate and the perception of product consumers as a necessity or luxury purchase. Depending on how many consumers are worth purchasing this product, they can reduce their consumption if the price is considered to be less affordable, increasing the consumption if the price is low enough to be considered a contract.
Demand schedule is often prepared in conjunction with what is called the offer of offer. The use of data from both plans makes it possible to modify production for a defined period of time to create enough units to satisfy demand at the current price, but not so much production that the stock of finished goods disappears in warehouses. From this point of view, the information contained in the demand schedule is useful in the trading costs, as smaller stocks at hand mean less taxes that would be for goods currently in the warehouse, waiting for sale.
The data contained in the demand schedule may change, which must be regularly updated. By monitoring economic, political and other events that are likely to have some kind of impact, positive or negative, the consumption of shopping habits can be used updated information to adjust prices for moving units that have already been produced,or to limit production by a certain amount to adapt to temporarily decrease in demand. This allows companies more efficiently to use their resources and prevent the chance of not having enough product at hand to satisfy ascending demand, and also prevent the accumulation of a huge inventory that will take much longer than originally expected.