Question

Explain why it is so important for a company to have good forecast in the future.

Answer 1

Forecasting is important because businesses thrive on being prepared.if you are a business owner, you need to know as accurately as possible what your outlook will be in the future. You need to know this in order to anticipate, for example,how much of various product you will need to order from your suppliers or how much (if at all) you will need to expand your manufacturing capacity.if you do not have good forecasts of things like sales volume for the next year amount from your suppliers and you might end up with excess inventory or you might run out of materials at a time when demand for your product is high.