Question

Question:What is the term for forecasts used for making day-to-day decisions about meeting demand?

Short answer

Answer

Forecasts are essential for every enterprise. Forecasting is critical in determining what quantity of inventory to remain to satisfy customer needs.

Step-by-step solution

Forecasts

Forecasts are essential to every concern. It is vital to contemplate the aim of the forecast before selecting the techniques. Strategic forecasts are typically longer-term. Tactical forecasts would only cover a short period, at the foremost some weeks within the longer term, and would typically be for individual items or products.

Forecasts needed for making day-to-day decisions about meeting demand

Forecasts are needed to determine how a firm operates processesdaily, and the term for forecasts used for making day-to-day decisions about meeting demand is thetacticalforecast.For example, when should the inventory for an item be replenished, or how much production should we schedule for an item next week.

These are the tactical forecasts where the goal is to estimate demand in the relatively short-term, a few weeks or months.Thetactical forecasts are important to ensure that we can meet customer lead time expectations and other criteria related to the availability of our products and services in the short term.