Forecasting drives all of the key business functions.Among the following cases, select the cases that are the least suited for the use of quantitative forecasting.
1)Demand of radically innovative new product
2)Supply of agricultural products
3)Demand of commodities
4)The rate of new product production
A) (1)
B) (1) and (2)
C) (2) and (4)
D) (4)

Question

Quizplus · Accepted Answer

Quantitative forecasting relies heavily on historical data and patterns, which may not exist for radically innovative new products. These products may also face uncertain market conditions or may disrupt existing demand patterns. Therefore, quantitative forecasting may not be the best choice for forecasting demand for such products. On the other hand, quantitative forecasting can be suitable for forecasting supply and demand of agricultural products and commodities based on historical trends and data. However, forecasting the rate of new product production may also require qualitative information like market conditions, innovation capabilities, and competitor strategies in addition to historical data, hence it is not the least suited for quantitative forecasting.

Forecasting Drives All of the Key Business Functions