Reactive forecasting was used for capacity planning before the implementation of physical goods supply chain management.

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Reactive forecasting was a common practice for capacity planning before the implementation of physical goods supply chain management. In reactive forecasting, companies would only adjust their production and inventory levels based on actual demand, instead of proactively predicting and planning for future demand. This approach often led to inefficient use of resources and high levels of waste and stockouts. However, with the introduction of physical goods supply chain management, companies can now use proactive forecasting techniques to better predict and plan for future demand, leading to more efficient production and inventory management.

Reactive Forecasting Was Used for Capacity Planning Before the Implementation