The greater the ability of a forecasting model to react quickly to changes in demand, the less accurate the forecast needs to be.

Question

Quizplus · Accepted Answer

If a forecasting model can react quickly to changes in demand, it can make adjustments and improve its accuracy over time, even if the initial forecast was not entirely accurate. Therefore, a less accurate initial forecast may be acceptable if the model can adjust quickly.

The Greater the Ability of a Forecasting Model to React