Which of the following would tend to decrease forecast accuracy?
A)a reduction in demand variability
B)a shortening of the forecast time horizon
C)an attempt to forecast demand for a group of similar items rather than an individual item
D)a change in the underlying causal system
E)an increase in the flexibility of the production system

Question

Quizplus · Accepted Answer

A change in the underlying causal system would tend to decrease forecast accuracy because the assumptions or patterns the forecast was based on have changed, making previous data and models less predictive of future outcomes.

Which of the Following Would Tend to Decrease Forecast Accuracy