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Why do Planners and Buyers order/produce less than they have sold last year?

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Question added by Elke Woofter , Project Assistant , American Technical Associates
Date Posted: 2014/10/13
georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Agreed with the answers to all colleagues

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

This is not a general rule 

  But if it happens 

In my opinion there are many reasons 

  Such as 

  * - bad planning 

* - Fluctuations in supply and demand 

* - Overstatement 

* - Shrinking market 

* - The constant evolution of  specially goods and electronic goods

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

When the last years' expectations are below met out,  and having excess stock with them so they are moving in a cautious way to comfortably improve the production/purchase order at a later date, delaying the decision until getting a perfect positive indication of the general trend and  company's marketing efficiency.

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Hi Elke,

 

Thank you for your invitation.

 

  1. The main reason is that over a period, the demand for the product drops therefore they order/produce less.
  2. If new products are introduced, than they will be left with old stock and will have to sell at less prices

 

 

 

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Thank you for your invitation and I apologize that you did not understand the question

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