Correct option is B
The pre-planning stage in production planning and control involves activities that are crucial for preparing the groundwork for effective production operations. One of the key activities in this stage is demand forecasting.
Demand forecasting is the process of estimating the future demand for a company's products or services. It involves analyzing historical sales data, market trends, and other relevant factors to predict future sales. This information is vital for planning the production schedules, ensuring that the right amount of resources (such as raw materials, labor, and machinery) are available when needed, and avoiding overproduction or underproduction.
By accurately forecasting demand, a company can optimize its inventory levels, minimize waste, and ensure that production meets customer needs efficiently. This activity is fundamental in the pre-planning stage as it sets the direction for subsequent planning and control activities.
