Final answer:
The demand forecast can guide decisions about expanding or reducing production, hiring or laying off workers, and starting new products or discontinuing existing ones.
Step-by-step explanation:
The demand forecast provided by the marketing department can guide decisions about adding new production capacity at a manufacturing company in several ways. Firstly, it can help the company determine whether it needs to expand or reduce production based on the expected demand. If the forecast indicates a significant increase in demand, the company may need to consider adding new production capacity. On the other hand, if the forecast suggests a decrease in demand, the company may need to scale back its production capacity.
Secondly, the demand forecast can guide decisions related to hiring workers or laying them off. If the forecast indicates an increase in demand, the company may need to hire more workers to meet the increased production needs. Conversely, if the forecast predicts a decrease in demand, the company may need to consider laying off workers to align its workforce with the anticipated demand.
Finally, the demand forecast can inform decisions about starting new products or discontinuing existing ones. If the forecast reveals a demand for new products that the company is not currently producing, it may need to invest in new production capacity to meet that demand. Conversely, if the forecast indicates a decline in demand for certain products, the company may need to consider discontinuing their production.