A manufacturing system uses sales forecasts to plan production. It uses the production plan to determine raw material needs and then uses the material needs to schedule purchases. This ultimately leads to reduced inventory costs. Which of the following is being used to reduce the inventory cost?

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Linkages are being used in this scenario. The manufacturing system is using sales forecasts to plan production and then using that production plan to determine raw material needs, which allows them to schedule purchases more effectively. This reduces the need for excess inventory, which ultimately leads to reduced inventory costs.

A Manufacturing System Uses Sales Forecasts to Plan Production