How to accurately predict and satisfy customer needs is very important for a company to survive. In general, the precision of demand forecasting is closely relative to the budget inserted in forecasting. In this paper, we develop a single-product model 9a newsboy model) with Bayesian approach to study how the decision-maker in a seasonal goods production system to determine to production quality and budget invested in demand forecasting. We find that when unit selling price, unit inventory disposal cost, or unit shortage cost is larger, or when unit production cost is appropriate, or when production setup cost is smaller, demand forecasting becomes more important.