How must organisations have the flexibility to demand occur?
Forecasting demand can be complicated and unreliable into an uncertain environment. Therefore a balance requires to be struck among capacity planning and meeting customer demand. When an organisation which does not mange its operations effectively this maybe tying up money unreasonably for example, cost of idle labour and expensive of holding inventory levels, or this may not be capable to extend supply of product or service of that flexibly adequate to meet surges into customer demand at ‘peak’ instants. Organisations should have the flexibility to extend and deal their supply when frequent or volatile changes within demand arise.