Accurate forecasting allows a company to allocate resources effectively, plan inventory management, and ensure timely production. It reduces delays and costs associated with supply chain disruptions.
Forecasting in Production Planning and Control (PPC) is crucial for determining the future production needs of a company. It helps in predicting the required materials, manpower, and machinery to meet future demand. The focus of forecasting is to ensure that the production schedule aligns with market demand and inventory requirements, helping to reduce overproduction or underproduction. Hence, the correct answer is planning future production needs.