Question

Explain the strategic importance of forecasting.

Answer 1

Forecasting is actually estimate of demand before the real actual demand came to know.This is why it is important in taking decisions of the firm activities regarding human resources , capacity and the supply chain.
Forecasting give the general idea to the companies for the future strategy  and decisions. Every large companies while making the strategies use the forecasting.
Demand and supply plans are made of on forecasting.supply is generally restricted by the firms according to forecasting.Having inventory(on time) is actually important for  making profit.  

Answer 2

Explanation:

THE STRATEGIC IMPORTANCE OF FORECASTING The forecast is the only estimate of demand until actual demand becomes known. Forecasts of demand therefore drives decision in many areas. Let's look at the impact of product forecast on three activities:1. Human Resources. Capacity Supply Chain Management.