Diego needs to forecast demand for his company's products, using the data he already possesses. He has an average of previous demand, and he knows the most recent demand because he believes it's a better predictor of future demand. Which forecasting technique should he use?
A) Simple moving average
B) Weighted moving average
C) Exponential smoothing
D) Benchmarking

Question

Quizplus · Accepted Answer

Exponential smoothing is the best choice for this scenario because it takes into account the most recent demand as a better predictor of future demand. Simple and weighted moving averages would only consider historical averages and may not reflect changes in demand trends. Benchmarking is not a forecasting technique but rather a process of comparing one's business processes and performance to industry standards or competitors.

Diego Needs to Forecast Demand for His Company's Products, Using