a) Forecasting leads to an increase in profit of an organization in various ways. For instance, forecasting helps businesses to prepare for future needs and potential opportunities. In this regard, the organizations can allocate their resources such as labor, raw materials, and capital effectively. This, in turn, reduces wastage, increases efficiency, and lowers the costs of production.
Example: Suppose the forecast shows that demand for product X will increase in the coming year. The organization can then decide to increase production to meet the anticipated demand. This may lead to an increase in the organization's sales revenue, consequently leading to an increase in profit.
b) The advantages of forecasting within an organization include:
Better planningRisk managementImproved decision makingc) There are various tactics for matching capacity to demand when capacity exceeds demand. They include:
Increase marketing effortsDiversify product or service offeringsAdjust pricingForecasting leads to an increase in profit of an organization as it helps the organization to prepare for the future and make informed decisions. It enables organizations to plan ahead and avoid unnecessary costs, thereby increasing profits. For example, a manufacturing company can use forecasting to predict the demand for its products in the future and plan its production accordingly. This helps the company to avoid overproduction or underproduction, reduce wastage, and save on costs, leading to increased profits.
The three advantages of forecasting within an organization are:
Better planning: Forecasting helps organizations to plan better by providing them with insights into the future. This enables organizations to allocate resources efficiently and make informed decisions that help them achieve their goals.Risk management: Forecasting helps organizations to manage risks by identifying potential risks and taking proactive measures to mitigate them. This reduces the impact of risks on the organization and helps them to stay competitive in the market.Improved decision making: Forecasting provides organizations with accurate information about the future, which enables them to make informed decisions. This reduces the likelihood of making wrong decisions, thereby increasing the chances of success.The tactics for matching capacity to demand when capacity exceeds demand are:
Increase marketing efforts: Organizations can increase their marketing efforts to attract more customers and increase demand for their products or services. This can be done by offering discounts, promotions, or improving the quality of their products or services.Diversify product or service offerings: Organizations can diversify their product or service offerings to attract a wider customer base and increase demand. This can be done by introducing new products or services that cater to different market segments.Adjust pricing: Organizations can adjust their pricing strategy to match demand by reducing prices during periods of low demand to attract more customers and increase sales. Conversely, they can increase prices during periods of high demand to maximize profits.Learn more about Forecasting: https://brainly.com/question/21445581
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