QUESTION $4(20$ Marks$)$

Based on the information provided below, answer the following questions.

The demand planner at Radasys Enterprises $($RE$)$ is dedicated to enhancing forecasting precision to better align inventory management with market demand. To this end, he is undertaking a comparative analysis of two candidate forecasting techniques: the Simple Exponential Smoothing method and the Moving Average method. This evaluation aims to determine which method delivers superior accuracy, thereby supporting improved inventory management, optimising resource allocation, and enhancing overall operational efficiency.

The sales data presented in the table below was extracted from RE$$s database for the evaluation exercise.

Year Quarter Sales, R

$2020$ Q$1300000$

Q$2350000$

Q$3480000$

Q$4420000$

$2021$ Q$1330000$

Q$2390000$

Q$3540000$

Q$4480000$

$2022$ Q$1360000$

Q$2450000$

Q$3600000$

Q$4540000$

$2023$ Q$1390000$

Q$2480000$

Q$3720000$

Q$4600000$

REQUIRED:

$4\mathrm{.}1.$Discuss any three $(3)$ strategic importance of demand forecasting in supply chain and operations management. $(4$ Marks$)$