QUESTION TWO

Every day, Operations Managers make decisions without knowing what will happen in the future. However forecasting will enable Managers make good estimates;

1. What is forecasting and what good attributes are drawn from the same as pertains to Operations Management? [5 Marks]
2. Forecasting is mainly classified in Future Time Horizons and is categorized into Three (3) Time Horizons. Identify and briefly explain these Three (3)categories, elaborately distinguish them through Three (3) Features and state the Three (3) major types of forecasts that Managers are likely to undertake in planning for future operations

[10 Marks]

1. What is the strategic importance of forecasting in Operations Management and in which Three (3) Activity areas is this critically considered? State and briefly describe the Seven (3) basic steps that will be followed to arrive at a good forecasting system. Mention and describe the Two (2) approaches of Forecasting and their associated methods [10 Marks]