Read the following case study and answer the questions that follow: SASKO Bread: Sasko believes that life should taste great and this is at the heart of everything we do! SASKO uses only the finest ingredients, milled, mixed and baked to tasty perfection. Because SASKO has been around for more than 80 years, it understands the importance of giving South Africans the sustenance they need without compromising on taste. Combined with a national network of world-class Bakeries & Mills all across South Africa, we ensure that you can enjoy locally made, superior quality goods every day. Forecasting plays a critical role in meeting the growing demand for SASKO products. With complimentary Flour & Bread categories and such rich heritage and history, SASKO is definitely the baking expert brand to be trusted. We cater to every kind of taste and type and make sure that everyone is inspired to bake only the best cakes, muffins, scones, pancake, and so much more. At the forefront of baking and innovation, were always looking to improve our brand with the best methods. Our dedicated research and development department ensures that only the most advanced baking processes and milling techniques are adhered to using the latest technology and equipment. The results shine through in soft, delicious slices of bread and consistently soft and fluffy flour that gives every tasty, energy-filled bite a touch of greatness. With SASKO in your basket, life really does taste great!

Question 1 (30 marks)

1.1 From the case study above, SASKO has been in existence for 80 years. Discuss the importance of forecasting in providing sustenance for South Africa in terms of meeting its demand. (2) 1.2 The following are data for demand for SASKO Brown bread for the following four weeks. Use the simple moving average to complete the This week column for Monday till Sunday (14) Days of the week 4 weeks ago 3 weeks ago 2 weeks ago Last week This week Monday 2200 2400 2300 2400 Tuesday 2000 2100 2200 2200 Wednesday 2300 2400 2300 2500 Thursday 2600 2500 2800 2650 Friday 2700 2600 2400 2000 Saturday 2000 2300 2200 2000 Sunday 2000 2300 2500 2600

1.3 The following are data for demand for SASKO Scone for the following four weeks. Use the weighted moving average of 40% (0.40) of actual demand of the most recent week, 30% (0.30) of two weeks ago; 20% (0.20) of three weeks ago and 10% (0.10) of four weeks ago.

With the use of the weighted moving average, complete the This week column for Monday till Sunday. (14)

Days of the week 4 weeks ago 3 weeks ago 2 weeks ago Last week This week Monday 2200 2400 2300 2400

Tuesday 2000 2100 2200 2200 Wednesday 2300 2400 2300 2500 Thursday 2600 2500 2800 2650 Friday 2700 2600 2400 2000 Saturday 2000 2300 2200 2000 Sunday 2000 2300 2500 2600