Explain what can a company do to resolve the problem of forecasting accuracy?
Explain what can a company do to resolve the problem of forecasting accuracy?
Forecasting is the technique of anticipating the future using facts from the past and present. Forecasting is an excellent method for ensuring that you have enough inventory for the next months. Utilizing different supply chain forecasting technologies, future demand may be forecasted weeks to months ahead of time. When demand is understated, it signifies that the firm does not have enough inventory to serve all of its consumers. Similarly, when a firm has excess stock, it becomes a burden rather than an asset. Inventory has a number of expenses connected with it, including labor costs, holding charges, and storage costs. As a result, business analysts must use supply chain software with forecasting capabilities to estimate demand in order to always have supplies on hand.
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