Why it is so Difficult to Prepare an Accurate Forecast for Planning Production
FAQs: Accurate Forecast for
Part - 5
Powerful Planning! Simplified
Explain why it is so difficult to prepare an
accurate forecast for planning production?
It is difficult because the sales forecasting itself is
difficult. We must try to ensure with a help of a good
system and process that sales forecasting itself is as
accurate as possible.
The supply and production planning is a derivation of
this forecast and their accuracy to a large extent depend
on accuracy of this forecast.
In case of volatile products one can use confidence limits
instead of point forecasts to ensure that the volatility
does not adversely impact the production schedules.
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