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Capacity planning requires demand forecasts for an extended period of time. Forecast accuracy tends to​ _______ as the forecasting horizon​ _______.

1 Answer

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Forecasting accuracy tends to decrease as the forecasting horizon increases.
Explanation—
It is harder to forecast far into the future. Accuracy is going to decrease because there are too many variables over more time. It is easier to forecast for just a few days in the future.
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