Assertion (A): Demand forecasting reduces risk related to business activities.
Reason (R): Demand forecasting helps in production planning, capacity planning, layout planning and inventory management.
1
Both (A) and (R) are correct and (R) is the correct explanation of (A).
2
Both (A) and (R) are correct and (R) is not the correct explanation of (A).
3
(A) is correct, but (R) is not correct.
4
(A) is wrong, but (R) is correct.