Select the one best answer from the following:
A) forecasts do not need to be tracked
B) forecast error does not need to be measured
C) when actual demand exceeds a reasonable error, it should be investigated to discover the cause of the error
D) all the above are true
E) none of the above is true

Question

Quizplus · Accepted Answer

Forecasting is not a perfect process and errors are inevitable. Therefore, when the actual demand exceeds a reasonable error, it is important to investigate the cause of the error so that improvements can be made in the future. Forecasts do need to be tracked and forecast error does need to be measured, making options A and B incorrect. Option D is not true as only one of the statements is correct. Option E is not true as at least one of the statements is correct.

Select the One Best Answer from the Following