Which department within a firm uses demand forecasts to make capacity decisions (adding shifts, adding overtime, or purchasing new equipment)?
A) Operations
B) Distribution
C) Marketing
D) Supply management

Question

Quizplus · Accepted Answer

Demand forecasts are used to predict the level of production needed to fulfill customer orders. This information is then used by the operations department to make decisions about increasing capacity, such as adding shifts, overtime, or purchasing new equipment to meet the demand. The distribution department is responsible for getting products from the manufacturer to the customer, while marketing is responsible for promoting and selling the products. Supply management is responsible for managing the supply chain and ensuring a steady supply of materials and resources.

Which Department Within a Firm Uses Demand Forecasts to Make