Forecasting (Production)
Predicting future production needs based on: demand forecasts, inventory levels, supplier lead times.
Real World
Marks & Spencer uses historical sales data and seasonal trends to forecast demand, ensuring it orders the right volume of clothing stock without over- or under-producing.
Exam Focus
Always state the consequence of inaccurate forecasting (e.g. stockouts or excess inventory) to move beyond description into analysis.
How well did you know this?