One requisite of an efficient business practice is knowing when to produce and how much (quantity) to produce. Forecasting provides the necessary input on production decisions.
Forecasting is a tool toward efficient business practice. Forecasting serves marketing people, salespeople, and managers.
Player (2010) specifies how forecasting drives businesses toward profitability:
- Marketing people need forecasts to estimate the expected demand ...
The solution cites instances where forecasting is necessary in business operations. Why forecasting is an efficient business practice is determined.