Let us start with the first function of Demand Forecasting, which is done by the central sales planning unit in collaboration with the national sales companies. The company has a group of experts for general forecasting of trends and demography. Each year, the initial sales quotas are fixed for each model specifying the sales requests for body-styles, engines, and high-price options. The fulfilment of such quotas/goals by national sales companies is monitored on a monthly basis, as it serves two functions. Firstly, the demand forecast is reported to the financial division as part of the firm's performance forecast. Secondly, this market information is an input factor to calculate the sales allocation for each market.