Hi everyone I need really need a solution for ML Manufacturi

Hi everyone, I need really need a solution for M&L Manufacturing, CASE, Questions, pg .(130) Operations Management, 11th Edition William, Steven. (1). What are some of the potential benefits of a more formalized approach to forecasting?.

Solution

Answer :-

Forecasting is telling the possible future value or future demand about a service or a need so the provider can manage their resources properly. Forecasting means planning ahead to avoid delay of service and inconveniencing the customers. This is done by sales people who makes forecasts on how many units of product needs to be produced at a certain period of time based on some variables that they are considering like the price, the season and the market. Forecasting also helps the company decides on the right amount of money that needs to be prepared, the cash flow, the inventory and the number of units to be made available at a certain period of time. With forecasting, there will be a more ease when distributing services avoiding any possible shortages or possible over supply. If the forecast is correct, then this possible scenarios can be avoided. With the right amount of product being produced to match the need in the market, inventory problems will be avoided.