The _______ method uses demand in the first period to forecast demand in the next period.
A)naïve
B)moving average
C)exponential smoothing
D)linear trend

Question

The _______ method uses demand in the first period to forecast demand in the next period. 
A)naïve
B)moving average
C)exponential smoothing
D)linear trend

Quizplus · Accepted Answer

The naïve method, also known as the simple or last period demand method, assumes that the demand in the next period will be equal to the demand in the current period. Therefore, it uses demand in the first period to forecast demand in the next period. The naïve method is appropriate when there are no obvious patterns or trends in the demand data.

The _______ Method Uses Demand in the First Period to Forecast