Describe Purpose Sales Forecast Relationship Production Plan Master Production Schedule Q34285682

Describe the purpose of the sales forecast and it relationshipto the production plan and Master production Schedule.

Expert Answer

Sales forecast helps understand the following factors:

1. To decide what material of what quantity will be needed inthe forecasted period.

2. What will be the budget allocated for materialprocurement?

3. What marketing activities needs to be conducted?

4. The logistic and warehouse arrangement that needs to bemanaged for the work period.

Sales forecast helps understand what is the quantity of an SKUthat needs to be produced across all the facilities. According theraw materials needs to be arranged from supplier by creating aMaster Production Schedule (MPS). For