QUESTION $2(25$ Marks$)$

Forecasting as highlighted by Heizer and Render $(2014)$ is the science of predicting future events and may be based on

historical and demand driven data.

$2\mathrm{.}1$ Identify and analyse the features that distinguish medium and long range forecasts from short range forecasts.

$(10$ marks$)$

$2\mathrm{.}2$ The information provided relates to the room registrations at Msisi Hotel for the past $8$ years. In order to project

future demand the management is interested in determining the mathematical trend of guest registration. This will

help the management in determining whether future expansion is warranted.

Table $1\mathrm{.}1$: Msisi Hotel Registrations

Year $($x$)$ Room Registrations $($y$)$

$117$

$216$

$316$

$421$

$520$

$620$

$723$

$825$

i$.$ Given the data on Table $1\mathrm{.}1,$ develop a least squares equation $($trend equation$)$ relating room registrations to

time. $(11$ marks$)$

ii$.$ What would be the forecasted room registrations for year $9?(4$ marks$)$

QUESTION $3(25$ Marks$)$

$$Although organisations in the manufacturing sector usually carry more inventory than service firms, effective inventory

management is nonetheless important to both manufacturers and service organisations.$$

In light of this statement discuss the functions of inventory and in addition discuss with the aid of examples any three

inventory management models that are used in addressing the questions, when to order and how much to order.

QUESTION $4(25$ Marks$)$

You have recently been assigned by Unilever, South Africa as the Chief Procurement Officer to put in place a reliable

supplier evaluation method$/$ system that can be used in assessing supplier performance.

Describe the preferred system that you will select and how it will be implemented.

$5$

ID

QUESTION $5(25$ Marks$)$

You are the senior manager at a major shipping line based in Manzimtoti. As a specialist in supply chain management

you are responsible for managing the largest clients. This requires an extensive knowledge of Incoterms.

In light of this, provide a critical discussion of the various incoterms and describe their application in the shipping

industry.