Forecasting (Production)
Predicting future production needs based on: demand forecasts, inventory levels, supplier lead times.
Real World
Toyota uses rolling 12-week demand forecasts combined with real-time inventory data to schedule production runs, avoiding both stockouts and costly overproduction at its UK Burnaston plant.
Exam Focus
For 'evaluate' questions, weigh forecast accuracy against the cost of getting it wrong — examiners reward balanced judgement.
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