The Effect of Demand Forecasting on the Financial Performance of Manufacturing Companies in Cameroon
DOI:
https://doi.org/10.47941/jacc.3876Keywords:
Demand Forecasting, Financial Performance, Inventory Management Practices, Manufacturing Companies, Cameroon, Structural Equation ModellingAbstract
Purpose: This study examines the effect of demand forecasting on the financial performance of manufacturing companies in Cameroon.
Methodology: Adopting a cause-effect research design, data were collected through structured questionnaires from 223 manufacturing firms in the Littoral, Centre, and West regions. Structural Equation Modelling (SEM) using SPSS AMOS was employed to analyse the relationships. Demand forecasting was measured with five indicators, while financial performance was assessed using sales growth, net profit margin, and inventory turnover.
Findings: The results indicate a strong positive and statistically significant effect of demand forecasting on financial performance (β = 0.633, p < 0.001). The findings demonstrate that effective demand forecasting significantly reduces stock-outs, minimises excess inventory, optimises working capital, and enhances customer responsiveness.
Unique Contribution to Practice and Policy: The study contributes empirical evidence from a developing economy context and provides actionable recommendations for manufacturers and policymakers in line with Cameroon’s Vision 2035 and National Development Strategy (NDS30).
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Copyright (c) 2026 Forsuh Nforngwa Nevie Tanue, Ndamsa Dickson Thomas, Visemih William Muffee
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