Which of the following is the FIRST step in a forecasting system?

A. Determine the use of the forecast.

B. Select the items to be forecasted.

C. Determine the time horizon of the forecast.

D. Select the forecast model (s).

Answer:a-Determine the use of the Forecast

Explanation:

The first step in a forecasting system is to determine the use of the forecast.

Forecast is a technique which uses previous data and reports to find the expected outcome of that particular event.

For example sales of a component A in next month provided its previous month data is available. Forecast may not reduce complication but it can give us an estimation of expected future event.