When will a company use a predictive decision model?
A) when it wishes to determine the best product pricing to maximize revenue
B) when it wishes to know how best to use advertising strategies to influence sales
C) when it wishes to know sales patterns to plan inventory levels
D) when it wishes to ensure that a specified level of customer service is achieved

Question

Quizplus · Accepted Answer

A predictive decision model would be used when a company needs to forecast future sales patterns to plan inventory levels, which is the case in option C. Option A involves maximizing revenue, which may not necessarily require a predictive decision model. Option B involves influencing sales, which may be more related to marketing and consumer behavior research rather than predictive decision modeling. Option D involves ensuring a specified level of customer service, which may be monitored and evaluated through other means such as customer satisfaction surveys and quality control processes.

When Will a Company Use a Predictive Decision Model