Capacity planning requires a demand forecast for an extended period of time into the future. What concerns would you have regarding an extended forecast as a capacity planner?
What will be an ideal response?
Unfortunately, forecast accuracy declines as the forecasting horizon lengthens. In addition, anticipating what competitors will do increases the uncertainty of demand forecasts. Demand during any period of time may not be evenly distributed; peaks and valleys of demand may (and often do) occur within the time period.
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