Forecast error will be caused by:
A) random variation from the average demand
B) errors in forecasting average demand
C) differences in lead times
D) a and b above
E) none of the above

Question

Quizplus · Accepted Answer

Forecast error can be caused by random variation from the average demand and errors in forecasting the average demand. Lead time differences can also impact the accuracy of the forecast, but are not a direct cause of forecast error. Therefore, both options A and B are correct.

Forecast Error Will Be Caused By