Question

Importance of forecasting in production planning and control

Answer 1

Forecasting is a process of predicting or estimating the future based on past and present data. ... It may not reduce the complications and uncertainty of the future. However, it increases the confidence of the management to make important decisions.

Production planning and control ensure a regular and steady flow of production. All machines are put to their optimum use. This helps in achieving a continuous production of goods.

This also helps to provide a regular supply of goods to consumers.
Forecasting is essential for number of planning decisions and often provides a valuable input on which operations of the business enterprises depend.