Final answer:
Forecasting helps predict future demand, while capacity management ensures resources are available to meet that demand efficiently.
Step-by-step explanation:
The relationship between forecasting and capacity management is that forecasting helps determine the future demand for a product or service, while capacity management ensures that an organization has the necessary resources to meet that demand.
Forecasting involves analyzing historical data and using statistical techniques to predict future trends. This helps organizations estimate the amount of products or services they need to produce or deliver at a given time.
Capacity management, on the other hand, focuses on optimizing the use of available resources to meet the forecasted demand. It involves assessing the organization's current capacity, identifying any limitations or bottlenecks, and making adjustments to ensure that the organization can meet the expected demand efficiently and effectively.