Using the average of recent historical demand to generate a forecast is referred to as what technique?
A) Simple moving average
B) Weighted moving average
C) Exponential smoothing
D) Linear trend forecast

Question

Quizplus · Accepted Answer

Simple moving average is a technique where the average of recent historical demand is used to generate a forecast. It is simple to use and requires less computational work compared to other techniques like weighted moving average or exponential smoothing. It is suitable for stable demand patterns and short-term forecasting.

Using the Average of Recent Historical Demand to Generate a Forecast