Which of the following statements best describes demand forecasting?
A)The objective of forecasting is to develop the best statistical model.
B)Better forecasts usually come from combinations of inputs.
C)Executives usually make better forecasts than machines.
D)Forecasting and demand planning have little to do with each other.

Question

Quizplus · Accepted Answer

Demand forecasting is the process of estimating future consumer demand for goods or services. It involves analyzing historical data and market trends to identify patterns and make informed predictions. Better forecasts usually come from using a combination of inputs, such as sales data, marketing analysis, and economic indicators. While executives may provide valuable insights, relying solely on their intuition may not always result in the most accurate forecast. Demand forecasting is closely related to demand planning, as the forecast is used to determine the quantity and timing of production or inventory replenishment.

Which of the Following Statements Best Describes Demand Forecasting